The Effect of Financial Statement Comparability on Trade Credit considering the role of Distressed Firms and Small Firms

Daghighi Masouleh, Mehrdad; Farhadi, Maryam; Fooladi, Masood; Molaei, Mahnam

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year 15, Issue 59 (2023)

fa 2023, 15(59): 110-93

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The Effect of Financial Statement Comparability on Trade Credit considering the role of Distressed Firms and Small Firms

Mehrdad Daghighi Masouleh¹

, Maryam Farhadi ^*

¹, Masood Fooladi²

, Mahnam Molaei³

1- Department of Accounting, Mobarakeh Branch, Islamic Azad University, Isfahan, Iran.
2- Department of Accounting, Shahin Shahr Branch, Islamic Azad University, Isfahan, Iran.
3- Department of Accounting, Najaf Abad Branch, Islamic Azad University, Najaf Abad, Iran.

Abstract: (2549 Views)

Financial statement comparability is one of the four enhancing qualitative characteristics of accounting information that enables users to identify and understand similarities in, and differences among, items. The purpose of this study is to investigate the effect of distressed firms and small firms on the relationship between financial statement comparability and trade credit. To measure the financial statement comparability, this study uses the method of De Franco et al. (2011). The sample consists of 122 companies listed on the Tehran Stock Exchange for the period 2013 to 2020. Findings indicate that the increase in financial statement comparability increases trade credit. In addition, the increase in financial statement comparability increases trade credit for distressed firms but does not have a significant effect on the trade credit for small firms.

Article number: 6

Keywords: Financial Statement Comparability, Trade Credit, Distressed Firms, Small Firms.

Full-Text [PDF 722 kb] (2548 Downloads)

Type of Study: Research | Subject: Special

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Daghighi Masouleh M, Farhadi M, Fooladi M, Molaei M. The Effect of Financial Statement Comparability on Trade Credit considering the role of Distressed Firms and Small Firms. fa 2023; 15 (59) : 6
URL: http://qfaj.mobarakeh.iau.ir/article-1-2729-en.html

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