The Influence of Increased Financial Flexibility on Small Accounting Firms' Public Audit Client Portfolios: Evidence from the Paycheck Protection Program
研究了薪资保护计划（PPP）贷款带来的财务灵活性增加是否影响小型会计师事务所的公开审计客户组合决策，发现获得贷款的会计事务所更倾向于选择风险较低、盈利潜力较高的新客户。
SUMMARY In this study, we examine whether increased financial flexibility afforded by the Paycheck Protection Program (PPP) affects small accounting firms’ public audit client portfolio decisions. We find some evidence suggesting that accounting firms receiving PPP loans exhibit greater public audit client selectivity. Specifically, accounting firms receiving PPP loans exhibit an increased likelihood of auditor switching and engage new clients that exhibit less financial and auditor business risk but greater potential for profitability relative to departing clients. Relative to both departing and continuing clients, new clients of firms receiving PPP loans exhibit some evidence of lower audit risk. Collectively, the results provide some evidence to suggest that the increased financial flexibility afforded through the PPP loans provided smaller accounting firms an opportunity to selectively manage their public audit client portfolio. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: M42; M48.