Monetary policy, accounting conservatism and trade credit
Using a sample of A-share listed firms in China during the 2003–2012 period, this paper investigates the effect of accounting conservatism on trade credit, taking changes in monetary policy into account. We find that corporations with higher accounting conservatism obtain more trade credit and that...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2015-12-01
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| Series: | China Journal of Accounting Research |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S1755309115000386 |
| _version_ | 1818650975722799104 |
|---|---|
| author | Bingbin Dai Fan Yang |
| author_facet | Bingbin Dai Fan Yang |
| author_sort | Bingbin Dai |
| collection | DOAJ |
| description | Using a sample of A-share listed firms in China during the 2003–2012 period, this paper investigates the effect of accounting conservatism on trade credit, taking changes in monetary policy into account. We find that corporations with higher accounting conservatism obtain more trade credit and that accounting conservatism has a greater influence on trade credit under tight monetary policy. Furthermore, the backgrounds of the supplier and customer influence the positive relationship between accounting conservatism and trade credit. This influence is more evident when a company is privately owned and has greater market power, and less evident when the supplier or customer is the controlling shareholder. |
| first_indexed | 2024-12-17T01:58:46Z |
| format | Article |
| id | doaj.art-950c645e686a4b3d80f9026b60deb9d4 |
| institution | Directory Open Access Journal |
| issn | 1755-3091 |
| language | English |
| last_indexed | 2024-12-17T01:58:46Z |
| publishDate | 2015-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | China Journal of Accounting Research |
| spelling | doaj.art-950c645e686a4b3d80f9026b60deb9d42022-12-21T22:07:53ZengElsevierChina Journal of Accounting Research1755-30912015-12-018429531310.1016/j.cjar.2015.09.002Monetary policy, accounting conservatism and trade creditBingbin DaiFan YangUsing a sample of A-share listed firms in China during the 2003–2012 period, this paper investigates the effect of accounting conservatism on trade credit, taking changes in monetary policy into account. We find that corporations with higher accounting conservatism obtain more trade credit and that accounting conservatism has a greater influence on trade credit under tight monetary policy. Furthermore, the backgrounds of the supplier and customer influence the positive relationship between accounting conservatism and trade credit. This influence is more evident when a company is privately owned and has greater market power, and less evident when the supplier or customer is the controlling shareholder.http://www.sciencedirect.com/science/article/pii/S1755309115000386Monetary policyAccounting conservatismTrade credit |
| spellingShingle | Bingbin Dai Fan Yang Monetary policy, accounting conservatism and trade credit China Journal of Accounting Research Monetary policy Accounting conservatism Trade credit |
| title | Monetary policy, accounting conservatism and trade credit |
| title_full | Monetary policy, accounting conservatism and trade credit |
| title_fullStr | Monetary policy, accounting conservatism and trade credit |
| title_full_unstemmed | Monetary policy, accounting conservatism and trade credit |
| title_short | Monetary policy, accounting conservatism and trade credit |
| title_sort | monetary policy accounting conservatism and trade credit |
| topic | Monetary policy Accounting conservatism Trade credit |
| url | http://www.sciencedirect.com/science/article/pii/S1755309115000386 |
| work_keys_str_mv | AT bingbindai monetarypolicyaccountingconservatismandtradecredit AT fanyang monetarypolicyaccountingconservatismandtradecredit |