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
Revista:
Notas técnicas: [continuación de Documentos de Trabajo FUNCAS]

ISSN: 1988-8767

Ano de publicación: 2012

Número: 656

Tipo: Documento de traballo

Outras publicacións en: Notas técnicas: [continuación de Documentos de Trabajo FUNCAS]

Resumo

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.