The role of accruals quality in the access to bank debt

  1. García Teruel, Pedro Juan
  2. Martínez Solano, Pedro
  3. Sánchez Ballesta, Juan Pedro
Journal:
Notas técnicas: [continuación de Documentos de Trabajo FUNCAS]

ISSN: 1988-8767

Year of publication: 2012

Issue: 656

Type: Working paper

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Abstract

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, even when we control for other determinants of bank debt and for the possible endogeneity between bank debt and accruals quality, a positive effect of accruals quality on bank debt, which suggests that higher precision of earnings reduces information asymmetries with banks and favours the access of firms to bank loans.

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