Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

The effect of the complexity of the company's environment on the relationship between financial reporting transparency and the speed of adjustment of companies' trade credit.

Document Type : Original Article

Authors
Khadijeh Khodabakhshi Paryjan 1
Nazanin Moghaddasi 2
1 Assistant Professor, Department of Accounting, West Tehran Branch, Islamic Azad University, Tehran, Iran.
2 Department of Accounting, West Tehran Branch, Islamic Azad University, Tehran, Iran.
Abstract
Financial reporting transparency makes the company's financial information more reliable and comparable, as a result, creditors can adjust credit conditions with greater confidence and faster than changing the company's financial conditions. This leads to improving the efficiency of the capital market and reducing transaction costs. In this regard, the present study seeks to examine the effect of the complexity of the company's environment on the relationship between financial reporting transparency and the speed of trade credit adjustment. In this study, 151 companies listed on the Tehran Stock Exchange were studied during the period 1403-1396. A panel regression model was used to test the hypotheses. The research findings show that financial reporting transparency has a positive and significant effect on the speed of trade credit adjustment, and the variable of the company's environment complexity also has a positive and significant effect on the relationship between financial reporting transparency and the speed of trade credit adjustment.
Keywords
Complexity of the company environment
transparency of financial reporting
speed of trade credit adjustment
Subjects