IME Journal

  • Year: 2018
  • Volume: 12
  • Issue: 1and2

Impact of Financial Reporting Quality on Getting Loans for Nascent Entrepreneurs: A Case Study Newly Selected Indian Textile Companies

  • Author:
  • Abdulfatah Abdullah Abdulkareem Shayf1,, Asiya Chaudhary2
  • Total Page Count: 8
  • DOI:
  • Page Number: 1 to 8

1Research Scholar, Department of Commerce, Aligarh Muslim University, Aligarh, Uttar Pradesh, 202001, India

2Professor, Department of Commerce, Aligarh Muslim University, Aligarh, Uttar Pradesh, 202001, India

*Corresponding Author: Abdulfatah Abdullah Abdulkareem Shayf, Research Scholar, Department of Commerce, Aligarh Muslim University, Aligarh, Uttar Pradesh, 202001, India, E-mail: af477325@gmail.com

Online published on 2 July, 2019.

Abstract

The paper aims to evaluate the impact of quality of financial reporting of nascent entrepreneurs on their ability to get loans from the financial market. Also, this study shows how entrepreneurs are maintaining the quality of financial reporting.

Taking a sample of 6 companies from the Indian textile sectors that were established in 2015 and also in 2016. Data were extracted from Prowess IQ database for the period from 2016 to 2017.

There is an indication that a high quality of financial reporting has a positive and significant association with the ability of Indian textile companies to get loans from the financial market. Moreover, financial reporting quality positively and significantly impacts on short-term and long-term loans.

The research paper provides evidence to measure the precision of financial reports and the results can benefit many relevant parties such as accountants, managers, and Entrepreneurs. The article also contributes to the existing literature.

Keywords

Financial reporting quality, Getting Loans, Nascent Entrepreneurs