Abstract
This study is looking for investigating the mediating effect of accounting information quality on the Relationship between Financial statement comparability and cash holdings. Hence In this paper, data from 90 non-financial firms listed on TSE between 2013 and 2017 (450 firm-year) were evaluated by using linear regression models with panel data analysis. To test the significance of mediating effect, the Sobel test is used. The results of the research show that financial statement comparability decreases poor accounting information, Also the results indicate that poor accounting information increases cash holdings. Moreover, by adding accounting information quality (mediating variable) to the model, there is also significant relationship between Financial statement comparability and cash holdings which implies comparability enhances accounting information quality that indirectly and significantly decreases cash holdings. Thus the author finds a partial mediation effect of accounting information quality on mentioned relationship.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: 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.