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The impact of conditional and unconditional conservatism on trade credit: evidence of Tehran Stock Exchange

Author

Listed:
  • Samin KOHANSAL

    (Faculty of Accounting, Kooshyar Higher Education Institute, Rasht, Iran)

  • Shoeyb ROSTAMI

    (Faculty of Accounting, Kooshyar Higher Education Institute, Rasht, Iran)

  • Zeynab ROSTAMI

    (Faculty of Accounting, Raja University, Qazvin, Iran)

Abstract

The aim of this research is to examine the impact of conditional and unconditional conservatism on the trade credit of companies listed at the Tehran Stock Exchange. In this respect, using a systematic deletion sampling, 74 companies were chosen and studied during the period 2009 to 2013. The method of testing the research hypotheses was a multivariate regression using estimated generalized least square. The results of the research indicated that conditional and unconditional conservatism are positively and significantly related to the trade credit of the companies; in other words, if a higher level of conservatism is used and types of conservatism grow, more trade credit will accrue to companies.

Suggested Citation

  • Samin KOHANSAL & Shoeyb ROSTAMI & Zeynab ROSTAMI, 2017. "The impact of conditional and unconditional conservatism on trade credit: evidence of Tehran Stock Exchange," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 15(145), pages 1-93, February.
    • Handle: RePEc:aud:audfin:v:15:y:2017:i:145:p:93
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    References listed on IDEAS

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    More about this item

    Keywords

    Trade credit; conditional conservatism; unconditional conservatism; Tehran Stock Exchange.;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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