Examining the effects of the quality of financial reports on SME trade credit: An innovative approach

Following an innovative approach, the effects of financial report quality on use trade credit in small and medium-sized enterprises (SMEs) are examined. This effect is considered a direct indirect way. Firstly, we analyze whether SMEs with low-quality information more likely to as resource. Secondly, investigate relationship between bank moderated by reports. For empirical analysis, sample Spanish over period 2004 2011, apply panel data model fixed effects. The findings suggest that firms reporting credit. Furthermore, influence found be partially audit opinion.