Access the full text.
Sign up today, get DeepDyve free for 14 days.
K. Hadri (2000)
Testing for Stationarity in Heterogeneous Panel DataEconometrics Journal, 3
J. Francis, Ryan LaFond, Per Olsson, K. Schipper (2005)
The market pricing of accruals qualityJournal of Accounting and Economics, 39
Journal of Financial Economics, 70
C. Leuz, D. Nanda, Peter Wysocki (2002)
Earnings Management and Investor Protection: An International ComparisonGlobal Business Issues eJournal
Thomas Fields, Thomas Lys, Linda Vincent (2001)
Empirical Research on Accounting ChoiceHistory of Accounting eJournal
Sudipta Basu (1997)
The conservatism principle and the asymmetric timeliness of earningsJournal of Accounting and Economics, 24
I. Haw, Bingbing Hu, Lee-Seok Hwang, Woody Wu (2004)
Ultimate Ownership, Income Management, and Legal and Extra‐Legal InstitutionsJournal of Accounting Research, 42
R. Porta, Florencio Silanes, Andrei Shleifer (1998)
Corporate Ownership Around the WorldCorporate Finance and Organizations eJournal
J. Houston, C. James (1996)
Bank Information Monopolies and the Mix of Private and Public Debt ClaimsJournal of Finance, 51
Patricia Dechow (1994)
Accounting earnings and cash flows as measures of firm performance : The role of accounting accrualsJournal of Accounting and Economics, 18
Kin Lo (2008)
Earnings Management and Earnings QualityJournal of Accounting and Economics, 45
J. Stiglitz, A. Weiss (1981)
Credit Rationing in Markets with Imperfect InformationThe American Economic Review, 71
Jing Liu, Doron Nissim, Jacob Thomas (2000)
Equity Valuation Using MultiplesCorporate Finance: Valuation
Kordestani Gh.R., Z. Majdi (2007)
INVESTIGATION OF RELATION BETWEEN EARNINGS ATTRIBUTES AND COST OF EQUITY, 14
M. Nelson, John Elliott, R. Tarpley (2003)
How Are Earnings Managed? Examples from AuditorsAccounting Horizons, 17
H. Etemadi, M. Momeni, H. Dehkordi (2012)
HOW EARNINGS MANAGEMENT AFFECT EARNINGS QUALITYFinancial Accounting Researches, 4
I. Hasan, Jong Park, Qiang Wu (2011)
The Impact of Earnings Predictability on Bank Loan ContractingERN: Economics of Contract: Theory (Topic)
C. Nobes (1983)
A JUDGEMENTAL INTERNATIONAL CLASSIFICATION OF FINANCIAL REPORTING PRACTICESJournal of Business Finance & Accounting, 10
Thomas Chemmanur, P. Fulghieri (1994)
Reputation, Renegotiation, and the Choice between Bank Loans and Publicly Traded DebtReview of Financial Studies, 7
Accounting Horizons, 17
Terry Warfield, J. Wild, Kenneth Wild (1995)
Managerial ownership, accounting choices, and informativeness of earningsJournal of Accounting and Economics, 20
James Myers, Linda Myers, Thomas Omer (2003)
Exploring the Term of the Auditor‐Client Relationship and the Quality of Earnings: A Case for Mandatory Auditor Rotation?The Accounting Review, 78
D. Bosworth, S.S. Kells (1998)
Measuring the performance of large Australian firms
K. Im, M. Pesaran, Y. Shin (2003)
Testing for unit roots in heterogeneous panelsJournal of Econometrics, 115
Andrew Levin, C. Lin, C. Chu (2002)
Unit root tests in panel data: asymptotic and finite-sample propertiesJournal of Econometrics, 108
Mohammad Rahaman (2010)
Access to Financing and Firm GrowthERN: Internal & External Contracting & Transaction Costs (Topic)
Foundations and Trends® in Accounting, 1
Journal of Accounting and Economics, 53
Allen Berger, Gregory Udell (2006)
A more complete conceptual framework for SME financeJournal of Banking and Finance, 30
Patricia Dechow, Ilia Dichev (2002)
The Quality of Accruals and Earnings: The Role of Accrual Estimation ErrorsThe Accounting Review, 77
Patricia Dechow, Weili Ge, Catherine Schrand (2010)
Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their ConsequencesJournal of Accounting and Economics, 50
W. Beaver, Stephen Ryan (2005)
Conditional and Unconditional Conservatism:Concepts and ModelingReview of Accounting Studies, 10
Ilia Dichev, Douglas Skinner (2002)
Large-Sample Evidence on the Debt Covenant HypothesisJournal of Accounting Research, 40
R. Watts, J. Zimmerman (2006)
Positive Accounting Theory: A Ten Year Perspective
Accountancy, 100
Fortune European Edition
Journal of accounting and economics, 31
V. Mihov, David Denis (2002)
The Choice between Bank Debt, Non-Bank Private Debt and Public Debt: Evidence from New Corporate BorrowingsJournal of Financial Abstracts eJournal
Hong Xie (2001)
THE MISPRICING OF ABNORMAL ACCRUALSThe Accounting Review, 76
M. McNichols (2000)
Research design issues in earnings management studiesJournal of Accounting and Public Policy, 19
K. Kanagaretnam, C. Lim, Gerald Lobo (2011)
Effects of national culture on earnings quality of banksJournal of International Business Studies, 42
The Journal of Finance, 59
Matthew Billett, T. King, D. Mauer (2007)
Growth Opportunities and the Choice of Leverage, Debt Maturity, and CovenantsJournal of Finance, 62
Ole‐Kristian Hope (2003)
Disclosure Practices, Enforcement of Accounting Standards and Analysts' Forecast Accuracy: An International StudyJournal of Accounting Research, 41
Patricia Dechow, Richard Sloan, A. Sweeney (1994)
DETECTING EARNINGS MANAGEMENTAccounting review: A quarterly journal of the American Accounting Association, 70
Journal of Accounting Research, 42
(2006)
1 Bank Lines of Credit in Corporate Finance : An Empirical Analysis
R. Ball, Ashok Robin, Joanna Wu (2000)
Incentives Versus Standards: Properties of Accounting Income in Four East Asian Countries, and Implications for Acceptance of IASChicago Booth Research Paper Series
Glenn Feltham, Sean Robb, Ping Zhang (2007)
Precision in Accounting Information, Financial Leverage and the Value of EquityFinancial Accounting eJournal
D. Collins, S. Kothari (1989)
An analysis of intertemporal and cross-sectional determinants of earnings response coefficientsJournal of Accounting and Economics, 11
Journal of Financial Economics, 69
Journal of Accounting Research, 40
Patricia Dechow, Weili Ge, Chad Larson, Richard Sloan (2011)
Predicting Material Accounting Misstatements*: Predicting Material Accounting MisstatementsContemporary Accounting Research, 28
Journal of Applied Econometrics, 22
Peter Easton, M. Zmijewski (1989)
Cross-sectional variation in the stock market response to accounting earnings announcements☆Journal of Accounting and Economics, 11
Douglas Diamond (1984)
Financial Intermediation and Delegated MonitoringThe Review of Economic Studies, 51
Accounting Horizons, 14
Journal of Finance, 54
the Iranian Journal of Financial Accounting Research, 4
F. Gul (2006)
Auditors' response to political connections and cronyism in Malaysia: Management of slipped adjustable gastric bands, 44
Patricia Dechow, Douglas Skinner (2000)
Earnings Management: Reconciling the Views of Accounting Academics, Practitioners, and RegulatorsFinancial Accounting eJournal
B. Jorgensen, Jing Li, Gil Sadka (2008)
Earnings Dispersion and Aggregate Stock ReturnsCapital Markets: Market Efficiency
Pedro García‐Teruel, P. Martínez‐Solano, J. Sánchez-Ballesta (2014)
The role of accruals quality in the access to bank debtJournal of Banking and Finance, 38
Sreedhar Bharath, Jayanthi Sunder, S. Sunder (2008)
Accounting Quality and Debt ContractingThe Accounting Review, 83
H. White (1980)
A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for HeteroskedasticityEconometrica, 48
D. Bosworth, P. Dawkins, M. Harris, S. Kells (1997)
Diversification and the performance of the Australian firms
J. Jones (1991)
Earnings Management During Import Relief InvestigationsJournal of Accounting Research, 29
Journal of Accounting and Economics, 36
Journal of Business Finance & Accounting, 39
The Iranian Journal of Financial Accounting and Auditing Researches, 7
Linda Hooks (2003)
The impact of firm size on bank debt useReview of Financial Economics, 12
Roger Kormendi, R. Lipe (1987)
Earnings Innovations, Earnings Persistence, and Stock ReturnsThe Journal of Business, 60
Richard Sloan (1998)
Do Stock Prices Fully Reflect Information in Accruals and Cash Flows About Future EarningsThe Accounting Review, 71
B. Mashayekhi, S. Mashayekh (2008)
Development of accounting in IranThe International Journal of Accounting, 43
Aloke Ghosh, Doo-cheol Moon (2010)
Corporate Debt Financing and Earnings QualityARN Wiley-Blackwell Publishers Journals
P. Pope (2003)
Discussion of Disclosure Practices, Enforcement of Accounting Standards, and Analysts' Forecast Accuracy: An International StudyJournal of Accounting Research, 41
D. Kwiatkowski, P. Phillips, P. Schmidt, Y. Shin (1992)
Testing the null hypothesis of stationarity against the alternative of a unit root: How sure are we that economic time series have a unit root?Journal of Econometrics, 54
The purpose of this paper is to establish a linkage between two rarely researched areas, i.e. earnings quality (EQ) and access to external and internal debt financing. Specifically, the authors aim to examine whether the quality of a firm’s reported earnings is significantly associated with its access to both private and bank debt financing.Design/methodology/approachThe authors test the hypotheses by employing panel data analysis for a sample of 108 companies listed on the Tehran Stock Exchange (TSE) during 2006-2015. The tests were conducted by using R econometric software.FindingsAfter controlling for some firm-specific factors and consistent with the primary expectations, the results reveal a significant and positive relationship between EQ and managerial access to external (bank) debt financing. In addition, the findings indicate that EQ is negatively associated with internal debt financing which is measured as the changes in firm retained earnings.Research limitations/implicationsAlthough the authors cautiously conducted the present study, there are some limitations that merit further consideration. First, the authors collected the data manually from 14 categories of industries in the TSE and, accordingly, an aggregate analysis across multiple categories of industries might have missed industry-specific and unique issues. Second, the authors used a narrow conceptualization of accruals quality which merely assesses a firm’s EQ. The measures can be enhanced by including more actionable proxies. Third, since the data on debt financing were collected from two different sources, this might have caused common method variance in the results procedurally.Originality/valueSince the fundamental institutional assumptions underpinning the Western and even East Asia debt contracting and EQ models are not valid in the institutional environment of Iran, the findings could provide substantial implications for the understanding of both debt financing and the quality of earnings. These significant institutional and ownership differences are the factors affecting firms’ leverage and capital choice decisions. Indeed, the study has laid some groundwork upon which a more detailed evaluation of the Iranian firms’ financial structure could be based.
Journal of Economic and Administrative Sciences – Emerald Publishing
Published: Apr 17, 2018
Keywords: Iran; Earnings quality; Bank financing; Tehran stock market
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.