Earnings quality and trade credit in the Gulf Cooperation Council

<p dir="ltr">The primary concern of credit providers is the timely payment of obligations by clients, as most clients tend to pay their obligations late. To obtain accurate information from their buyers, credit providers need to rely on financial reporting or other information channe...

وصف كامل

محفوظ في:
التفاصيل البيبلوغرافية
المؤلف الرئيسي: Aws AlHares (17541741) (author)
مؤلفون آخرون: Ali Al-Mohannadi (17541744) (author), Tarek Abu-Asi (17541747) (author), Yousef AlBaker (17541750) (author), Fatima Al Malki (17541753) (author)
منشور في: 2023
الموضوعات:
الوسوم: إضافة وسم
لا توجد وسوم, كن أول من يضع وسما على هذه التسجيلة!
_version_ 1864513530465615872
author Aws AlHares (17541741)
author2 Ali Al-Mohannadi (17541744)
Tarek Abu-Asi (17541747)
Yousef AlBaker (17541750)
Fatima Al Malki (17541753)
author2_role author
author
author
author
author_facet Aws AlHares (17541741)
Ali Al-Mohannadi (17541744)
Tarek Abu-Asi (17541747)
Yousef AlBaker (17541750)
Fatima Al Malki (17541753)
author_role author
dc.creator.none.fl_str_mv Aws AlHares (17541741)
Ali Al-Mohannadi (17541744)
Tarek Abu-Asi (17541747)
Yousef AlBaker (17541750)
Fatima Al Malki (17541753)
dc.date.none.fl_str_mv 2023-07-27T03:00:00Z
dc.identifier.none.fl_str_mv 10.22495/jgrv12i3art14
dc.relation.none.fl_str_mv https://figshare.com/articles/journal_contribution/Earnings_quality_and_trade_credit_in_the_Gulf_Cooperation_Council/24717354
dc.rights.none.fl_str_mv CC BY 4.0
info:eu-repo/semantics/openAccess
dc.subject.none.fl_str_mv Commerce, management, tourism and services
Accounting, auditing and accountability
Banking, finance and investment
Economics
Econometrics
Earnings Quality
Financing
Trade Credit
Comparability
dc.title.none.fl_str_mv Earnings quality and trade credit in the Gulf Cooperation Council
dc.type.none.fl_str_mv Text
Journal contribution
info:eu-repo/semantics/publishedVersion
text
contribution to journal
description <p dir="ltr">The primary concern of credit providers is the timely payment of obligations by clients, as most clients tend to pay their obligations late. To obtain accurate information from their buyers, credit providers need to rely on financial reporting or other information channels. The purpose of this study is to investigate the impact of earnings quality on trade credit, with a focus on the moderating role of accounting information comparability. We used Refinitiv Eikon and Fitch Connect databases to measure the variables. The study utilized financial information from 250 companies listed on the Gulf Cooperation Council (GCC), and six countries’ stock exchanges between 2016 and 2021 with 1500 firm-year observations. Panel data regression models were used to test the research hypotheses. This study aims to answer if earnings quality has an impact on trade credit and if the impact of earnings quality on trade credit is greater in companies with higher comparability than in companies with lower comparability. The findings revealed that earnings quality has a positive impact on trade credit. Moreover, the results suggested that an increase in accounting information comparability intensifies the effect of earnings quality on trade credit. This paper has repercussions for policymakers, investors, and business organizations. Importantly, our study reveals how higher levels of earnings quality lead to better trade credit practices.</p><h2>Other Information</h2><p dir="ltr">Published in: Journal of Governance and Regulation<br>License: <a href="https://creativecommons.org/licenses/by/4.0" target="_blank">https://creativecommons.org/licenses/by/4.0</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.22495/jgrv12i3art14" target="_blank">https://dx.doi.org/10.22495/jgrv12i3art14</a></p>
eu_rights_str_mv openAccess
id Manara2_a61f3e9866df937ff7f3b05c7f4481da
identifier_str_mv 10.22495/jgrv12i3art14
network_acronym_str Manara2
network_name_str Manara2
oai_identifier_str oai:figshare.com:article/24717354
publishDate 2023
repository.mail.fl_str_mv
repository.name.fl_str_mv
repository_id_str
rights_invalid_str_mv CC BY 4.0
spelling Earnings quality and trade credit in the Gulf Cooperation CouncilAws AlHares (17541741)Ali Al-Mohannadi (17541744)Tarek Abu-Asi (17541747)Yousef AlBaker (17541750)Fatima Al Malki (17541753)Commerce, management, tourism and servicesAccounting, auditing and accountabilityBanking, finance and investmentEconomicsEconometricsEarnings QualityFinancingTrade CreditComparability<p dir="ltr">The primary concern of credit providers is the timely payment of obligations by clients, as most clients tend to pay their obligations late. To obtain accurate information from their buyers, credit providers need to rely on financial reporting or other information channels. The purpose of this study is to investigate the impact of earnings quality on trade credit, with a focus on the moderating role of accounting information comparability. We used Refinitiv Eikon and Fitch Connect databases to measure the variables. The study utilized financial information from 250 companies listed on the Gulf Cooperation Council (GCC), and six countries’ stock exchanges between 2016 and 2021 with 1500 firm-year observations. Panel data regression models were used to test the research hypotheses. This study aims to answer if earnings quality has an impact on trade credit and if the impact of earnings quality on trade credit is greater in companies with higher comparability than in companies with lower comparability. The findings revealed that earnings quality has a positive impact on trade credit. Moreover, the results suggested that an increase in accounting information comparability intensifies the effect of earnings quality on trade credit. This paper has repercussions for policymakers, investors, and business organizations. Importantly, our study reveals how higher levels of earnings quality lead to better trade credit practices.</p><h2>Other Information</h2><p dir="ltr">Published in: Journal of Governance and Regulation<br>License: <a href="https://creativecommons.org/licenses/by/4.0" target="_blank">https://creativecommons.org/licenses/by/4.0</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.22495/jgrv12i3art14" target="_blank">https://dx.doi.org/10.22495/jgrv12i3art14</a></p>2023-07-27T03:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.22495/jgrv12i3art14https://figshare.com/articles/journal_contribution/Earnings_quality_and_trade_credit_in_the_Gulf_Cooperation_Council/24717354CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/247173542023-07-27T03:00:00Z
spellingShingle Earnings quality and trade credit in the Gulf Cooperation Council
Aws AlHares (17541741)
Commerce, management, tourism and services
Accounting, auditing and accountability
Banking, finance and investment
Economics
Econometrics
Earnings Quality
Financing
Trade Credit
Comparability
status_str publishedVersion
title Earnings quality and trade credit in the Gulf Cooperation Council
title_full Earnings quality and trade credit in the Gulf Cooperation Council
title_fullStr Earnings quality and trade credit in the Gulf Cooperation Council
title_full_unstemmed Earnings quality and trade credit in the Gulf Cooperation Council
title_short Earnings quality and trade credit in the Gulf Cooperation Council
title_sort Earnings quality and trade credit in the Gulf Cooperation Council
topic Commerce, management, tourism and services
Accounting, auditing and accountability
Banking, finance and investment
Economics
Econometrics
Earnings Quality
Financing
Trade Credit
Comparability