Examining the effects of the quality of financial reports on SME trade credit: an innovative approach

Following an innovative approach, the effects of finan-cial report quality on the use of trade credit in small andmedium-sized enterprises (SMEs) are examined. Thiseffect is considered in a direct and indirect way. Firstly,we analyze whether SMEs with low-quality informationare more likely to use tr...

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Detalles Bibliográficos
Autores: Palacín Sánchez, María José, Canto Cuevas, Francisco Javier, Di Pietro, Filippo
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2021
País:España
Institución:Universidad de Sevilla (US)
Repositorio:idUS. Depósito de Investigación de la Universidad de Sevilla
OAI Identifier:oai:idus.us.es:11441/128268
Acceso en línea:https://hdl.handle.net/11441/128268
https://doi.org/10.1111/irfi.12363
Access Level:acceso abierto
Palabra clave:Bank credit
Financial report quality
SME
Trade credit
Descripción
Sumario:Following an innovative approach, the effects of finan-cial report quality on the use of trade credit in small andmedium-sized enterprises (SMEs) are examined. Thiseffect is considered in a direct and indirect way. Firstly,we analyze whether SMEs with low-quality informationare more likely to use trade credit as a financialresource. Secondly, we investigate whether the rela-tionship between trade credit and bank credit in SMEsis moderated by the quality of financial reports. For theempirical analysis, we use a sample of Spanish SMEsover the period 2004 to 2011, and apply a panel datamodel with fixed effects. The findings suggest thatfirms with low-quality financial reporting use moretrade credit. Furthermore, the influence of bank crediton trade credit is found to be partially moderated byaudit opinion.