Board Report Readability and Trade Credit

Subject Areas : Corporate governance

Leila Vafadar Dolagh ¹ , Shahnaz Mashayekh ² , Tooba Haghighat ³

1 - Master's Degree in Accounting, Alzahra University, Tehran, Iran
2 - Associate Prof. of Accounting, Alzahra University, Tehran, Iran
3 - PhD. Candidate in Accounting, Accounting, Alzahra University, Tehran, Iran

Received: 2024-08-12 Accepted : 2024-11-26 Published : 2025-02-08

Keywords: Readability of The Report of The Board of Directors, Commercial Credit, Financing of Creditors.,

Abstract :

Commercial credit is one of the important topics in domestic research. The readability of the report of the board of directors is one of the factors that has received less attention in these studies. Therefore, the purpose of this research is to examine the relationship between the readability of the board of directors' report and commercial credit in companies listed on the Tehran Stock Exchange. In order to test the hypothesis of the research, financial information was used during the years 2017 to 2022 (171 companies). The hypothesis of the research was tested by multivariate linear regression of smell through Eviews, and the fog index was used to measure the readability of the report of the board of directors. The research results show; There is a significant and negative relationship between the readability of the board of directors' report and the commercial credit received from creditors. In Iran, business units use more complex reporting for board of directors' reports to use commercial credit from their suppliers and trade creditors, and the readability of financial reporting in these companies is less

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