Open AccessThe Role of Financial Reporting Quality in Accessing to Financial Debt: Evidence From Italy
Author(s) -
Andrea Rey,
Giovanni Catello Landi
Publication year - 2018
Publication title -
international journal of accounting and financial reporting
Language(s) - English
Resource type - Journals
ISSN - 2162-3082
DOI - 10.5296/ijafr.v8i3.13633
Subject(s) - business , accrual , proxy (statistics) , quality (philosophy) , finance , debt , financial ratio , financial statement , accounting , financial analysis , accounting management , financial system , accounting information system , audit , philosophy , earnings , epistemology , machine learning , computer science
This paper aims to assess whether financial reporting quality affect the access of Italian Non-SME firms to financial debt. In order to measure the financial reporting quality, we assume as proxy the accrual quality. We carried out a regression analysis, using financial statement data of firms sampled. The results reveal a positive association between financial reporting quality and the access to bank and financial institution debt. In addition, our findings also show no association between financial debt maturity and the accounting quality of firms.