The role of accruals quality in the access to bank debt

This work analyses the effect of accruals quality in the access of firms to bank debt in a panel data of SME Spanish firms. The results show a positive association between accruals quality and bank debt, even when controlling for other determinants of bank debt and for possible endogeneity between bank debt and accruals quality, which suggests that higher precision of earnings reduces information asymmetries with banks and favors the access of firms to bank loans.

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Year of publication:	2014
Authors:	García-Teruel, Pedro J. ; Martínez-Solano, Pedro ; Sánchez-Ballesta, Juan Pedro
Published in:	Journal of Banking & Finance. - Elsevier, ISSN 0378-4266. - Vol. 38.2014, C, p. 186-193
Publisher:	Elsevier
Subject:	Accruals quality \| Bank debt \| Information asymmetry

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Type of publication:	Article
Classification:	G31 - Capital Budgeting; Investment Policy ; G32 - Financing Policy; Capital and Ownership Structure
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011065666