Does Risk Disclosure Matter for Trade Credit?

Issal Haj-Salem and Khaled Hussainey ()
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Issal Haj-Salem: Department of Accounting, Institute of Higher Commercial Studies of Carthage, University of Carthage, Carthage 1054, Tunisia

JRFM, 2021, vol. 14, issue 3, 1-13

Abstract: In this paper, we examine the impact of risk disclosure practices on trade credit. We hypothesize that risk information could reduce information opacity that arises between companies and their suppliers. We collected annual reports for Tunisian listed companies for the period 2008–2013. This gives us 146 firm-year observations. We find that risk disclosure has a positive impact on the level of trade credit. Our paper offers a new empirical evidence on the role of risk disclosure in reducing information asymmetry and increase companies’ access to short-term external funds. Our study provides managerial implications for firms, suppliers, and regulatory authorities.

Keywords: risk disclosure; trade credit; content analysis; Tunisian listed companies (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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