Document Type : Original Research
Authors
1 University of Azad- Tehran
2 Islamic Azad University, South Tehran Branch
Abstract
In emerging financial markets, particularly in Iran, accounting information transparency plays a pivotal role in mitigating information asymmetry and enhancing market efficiency. Beyond its function as a reporting instrument, such transparency serves as a foundation for fostering trust and facilitating capital flow. Working capital, as a key metric of operational efficiency, reflects a firm’s capability to convert assets into liquidity. This study investigates the impact of accounting information transparency on working capital for firms listed on the Tehran Stock Exchange (TSE) over a 10-year period (2015–2024), while simultaneously exploring the moderating role of trade credit in this relationship. Utilizing a sample of 101 firms and 1,010 firm-year observations, secondary data were extracted from financial statements and the Codal database and analyzed using multiple regression models. The results indicate that accounting information transparency has a positive and significant impact on working capital. Furthermore, trade credit plays a significant moderating role; although the interaction coefficient is negative, its inclusion in the model underscores the complexity and simultaneous importance of these factors. These findings hold significant implications for managers, investors, and policymakers, emphasizing the necessity of strengthening transparency and credit assessment mechanisms to improve operational efficiency and bolster market confidence.
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