Investigation on the Relationship between the Quality of Accruals and External Financing in Tehran Stock Exchange Listed Companies


M. Jafarian , K. Azinfar ,

Download Full PDF Pages: 24-28 | Views: 358 | Downloads: 103 | DOI: 10.5281/zenodo.3463047

Volume 4 - December 2015 (12)


Present study, using panal data, investigate the relationship between quality of accruals and external financing in 182 listed firms of Tehran Stock Exchange (TSE) during 2009 to 2013. In this study, modified Dechow et al (2002) model has been used as criterian for quality of accruals. The results show that there is a positive and significant relationship between quality of accruals and external financing. That is, higher quality of accruals can result in higher expectation for external financing. 


Quality of Accruals, External Financing, Tehran Stock Exchange


  1. Dechow, P., Dichev, I. (2002). The quality of accruals and earnings: the role of accrual estimation errors. The Accounting Review 77, 35–59.
  2. García-Teruel, P. J., Martínez-Solano, P., & Sánchez-Ballesta, J. P. (2014). The role of accruals quality in the access to bank debt. Journal of Banking & Finance, 38, 186-193.
  3. Georgios, P, Dimitrious, T & Wang, T. (2011). Accruals and the performance of stock returns following external financing activities. The british accounting review, vol 43, pp 214-229.
  4. Ghosh, A, & Moon, D. (2010). Corporate debt financing and earnings quality. Journal of business finance and accounting, vol 37, pp 538-559.
  5. Goodman, T. (2007). Abnormal accruals and external financing. Eller College of management, university of Arizona.
  6. Haw, I, Lee, J, & Lee, W. (2014). Debt financing and accounting conservatism in private firms. Contemporary accounting research, vol31. No4, pp 1220-1259.
  7. Nelson, R. M., Belkin, P., & Mix, D. E. (2010, April). Greece's debt crisis: Overview, policy responses, and implications. Library of Congress Washington DC Congressional Research Service.
  8. Pedro, G, Pedro, M, & Juan, P. (2014). The role of accruals quality in the access to bank debt. Journal of banking and finance, vol 38, pp 186-193.
  9. Qi, C, & Zhang, J. (2010). Accrual quality, bond liquidity and cost of debt. Available at
  10. Rozeff, M. S. (2010). Rothbard on Fractional Reserve Banking A Critique. The Independent Review, 14(4), 497.
  11. Shan, Y, Taylor, S, & Walter, T. (2012). Earnings management or measurement error? The effect of external financing on unexpected accruals. University of Technology. Sydney.

Cite this Article: