The Effect of Firm Type on the Relationship between Accounting Quality and Trade Credit in Iraqi listed firms
Year: 2024
Type: article
Abstract: the main aim of this study is to evaluate The Effect of Firm Type on the Relationship between Accounting Quality and Trade Credit in Iraqi listed firms. In this research, the dependent variable is trade credit, which is accounts payable divided by total assets (Petersen& Rajan, 1997; Giannetti et al., 2011; Ke, 2015). The independent variable is accounting quality, which is calculated by three indicators, including profit sustainability, profit predictability as well as real earnings management, for which we used Kormendi& Lipe (1987), Francies et al. (2004) and Roychowdhury (2006) models respectively. The data is based on a sample of 35 firms from 2011 to 2016. During this period, between 2011 and 2013 we have financial crisis – ISIS[1] entered Iraq – and between 2014 and 2016 we have the period after the crisis. Our hypotheses are run by panel data on STATA14 software. The results show that the effect of firm type on the relationship between firm sustainability and trade credit is not significant; the moderating effect of firm type on the relationship between profit predictability and trade credit is not significant; and the moderating effect of firm type on the relationship between real earnings management and trade credit is significant-positive.
DOI: 10.53796/hnsj59/17
Author: The Effect of Firm Type on the Relationship between Accounting Quality and Trade Credit in Iraqi listed firms
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4402104542