Does KAMs Disclosure Affect Trade Credit Decision? Evidence from Egypt | ||
| مجلة الاسکندرية للبحوث المحاسبية | ||
| Article 11, Volume 8, Issue 2, May 2024, Pages 77-113 PDF (1.38 M) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/aljalexu.2024.371061 | ||
| Authors | ||
| Rasha Mohamed El-Haddad1; Khaled Hussainey2 | ||
| 1ACU | ||
| 2Bangor Business School, Bangor University, UK | ||
| Abstract | ||
| This study aims to provide evidence on the effect of disclosing Key Audit Matters (KAMs) in the new audit report on the trade credit in Egypt. It investigates the association between KAMs disclosed by auditors and the trade credit decisions. A sample of Egyptian listed non-financial firms was used, and data were collected from their annual financial reports during 2018-2021 to be analyzed. Regression analysis was carried out to test the hypotheses. The results suggest that KAMs disclosure in the new audit report will affect the trade credit decisions. A significant positive effect of disclosed KAMs on trade credit offered to customers has been found. Also, the authors found that KAMs disclosure positively affect trade credit received from suppliers. This paper provides empirical evidence of the impact of KAMs disclosure on trade credits decision. There is no study that has yet examined the association between disclosed KAMs in new audit report and trade credit offered and received. | ||
| Keywords | ||
| Trade credit; Key Audit Matters; Audit report; Emerging economies; Egypt | ||
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