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The Effect of Disclosure Quality rank and Proper Notifications on the Debt Capacity

    Authors

    • vahab rostami 1
    • leyla Rezaei 2

    1 Department of Economics and Social Science, Payame Noor University, PO BOX 19395-3697 Tehran, Iran.

    2 ms in Accounting , Payame Noor University, behshahr branch, behshahr iran

,

Document Type : Research Paper

10.30479/jfak.2019.9003.2210
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Abstract

Purpose: Current research is willing to trace the effect of disclosure quality rank and proper notifications on debt capacity of the companies.
Methodology: To achieve research aim were elected 132 companies by systematic elimination pattern and wanted data for research variables along the years 2013-2017 gathered and hypothesis model was tested with the help of multiple regression analysis. In order to measure the debt capacity (as a dependent variable of research), the model previously developed by Frank Goyal (2009) and to assess the ranking of the disclosure quality (independent variable of the research) of the rankings declared in the "Quality ranking Disclosure and proper notification" of stock exchange organization has been used.
Findings: The result of the hypothesis test showed that the ranking of disclosure and proper notifications has a positive and significant effect on the borrowing capacity of the companies.
Conclusion: Companies with higher disclosure rank have higher borrowing capacity also.
Contribution: Research finding, in addition to extending the theoretical foundations of past research, contains valuable concepts to managers and regulatory bodies about importance of companies' financial information disclosure quality and rank. Qualitative disclosure not only reduces investors' uncertainty but also creditors' and upon that their required return and in final lead to increasing company's borrowing capacity.

Keywords

  • "Disclosure quality rank and proper notifications"
  • "Debt Capacity"
  • "Reliability and Timeliness"
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    • Article View: 1,239
    • PDF Download: 1,184
Financial Accounting Knowledge
Volume 6, Issue 1 - Serial Number 20
June 2019
Pages 107-136
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How to cite
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  • Article View: 1,239
  • PDF Download: 1,184

APA

rostami, V. and Rezaei, L. (2019). The Effect of Disclosure Quality rank and Proper Notifications on the Debt Capacity. Financial Accounting Knowledge, 6(1), 107-136. doi: 10.30479/jfak.2019.9003.2210

MLA

rostami, V. , and Rezaei, L. . "The Effect of Disclosure Quality rank and Proper Notifications on the Debt Capacity", Financial Accounting Knowledge, 6, 1, 2019, 107-136. doi: 10.30479/jfak.2019.9003.2210

HARVARD

rostami, V., Rezaei, L. (2019). 'The Effect of Disclosure Quality rank and Proper Notifications on the Debt Capacity', Financial Accounting Knowledge, 6(1), pp. 107-136. doi: 10.30479/jfak.2019.9003.2210

CHICAGO

V. rostami and L. Rezaei, "The Effect of Disclosure Quality rank and Proper Notifications on the Debt Capacity," Financial Accounting Knowledge, 6 1 (2019): 107-136, doi: 10.30479/jfak.2019.9003.2210

VANCOUVER

rostami, V., Rezaei, L. The Effect of Disclosure Quality rank and Proper Notifications on the Debt Capacity. Financial Accounting Knowledge, 2019; 6(1): 107-136. doi: 10.30479/jfak.2019.9003.2210

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