Abstract
This paper takes listed companies from 2014 to 2018 as a research sample. The results show that the independent audit opinion will affect the trade credit decision of the supplier to the enterprise. A good institutional environment can weaken the impact of non-standard independent audit opinion on the cost and scale of trade credit. And good industry environment can weaken the positive correlation between non-standard independent audit opinion and trade credit cost.
Highlights
Enterprises need to reserve working capital to maintain their daily production and operation
The regression results of model 5 show that non-standard independent audit opinions are positively correlated with trade credit costs, industry environment is negatively correlated with trade credit costs, and the crossover between industry environment and audit opinion is negatively correlated with trade credit costs
In the poor industry environment group, the audit opinion significantly positive correlation with trade credit costs, indicating that if the company is in a better industry environment, the issuance of non-standard audit opinion will not have a significant impact on the company’s trade credit costs, and if the company’s industry environment is poor, it will produces a series of bad influences
Summary
Enterprises need to reserve working capital to maintain their daily production and operation. They often need to resort to external financing when they are lack of capital [1]. The type of independent audit opinion will affect the credit decision of suppliers, and in turn affect the scale and mode of trade credit available to enterprises. Existing research proposes the concentration of suppliers [4], the nature of property rights [5], market position [6], industry environment [7] and the level of protection of producers’ legitimate rights and interests [5] will affect the effectiveness of independent audit opinions on trade credit. This article takes the institutional environment and industry environment as moderating variables into the research, explores the impact of independent audit opinion on trade credit, and analyze the influence of institutional environment and industry environment on trade credit
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
