Discussion of The Effect of Aggregating Accounting Reports on the Quality of the Lending Decision: An Empirical Investigation.

The article presents a discussion of the research paper by Donald Nester, "The Effect of Aggregating Accounting Reports on the Quality of the Lending Decision: An Empirical Investigation." The author criticizes Nester's methodology for establishing the levels of aggregation on several points associated with Nester's model. These points include the existence of questions concerning the integrity of the conventional account classifications, that there is insufficient data to allow calculations of the 11 ratios, that all footnote and supplemental information are held constant, and that there is a 10 percent materiality rule.