International Journal of Finance & Managerial Accounting

International Journal of Finance & Managerial Accounting

Investigating the effect of the quality of total accruals and the risk of exchange rate fluctuations on the cost of debt

Document Type : Original Article

Authors
Davood Salehi Najafabadi 1
maryam Emamimibody 2
1 MSc. Student, Department of Accounting, Shahinshahr Branch, Islamic Azad University, Shahinshahr, Iran
2 Associate Prof., Department of Accounting, Shahinshahr Branch, Islamic Azad University, Shahinshahr, Iran
10.22034/ijfma.2025.77671.2128
Abstract
The purpose of this research is to investigate the effect of the quality of total accruals and the risk of exchange rate fluctuations on the cost of debt for companies listed on the Tehran Stock Exchange. This is an applied and descriptive-analytical study. The statistical population consists of all companies listed on the Tehran Stock Exchange between the years 2014 and 2022. After screening, 105 companies were selected as the sample for analysis. To test the research hypotheses, the reliability of the variables was first assessed using the generalized Dickey-Fuller test. In the subsequent step, the Breusch-Pagan, Chow (F-Limer), and Hausman tests were employed to determine the appropriate estimation method, with the results confirming the use of the random effects panel model. According to the results of the Dickey-Fuller test, the variables in the study are statistically significant. Furthermore, based on the random effects panel estimation, the findings indicate that: The first hypothesis of the research is confirmed: the quality of discretionary accruals has a positive and significant effect on the cost of debt for the companies analyzed., the second hypothesis is also confirmed: the quality of non-discretionary accruals has a negative and significant effect on the cost of debt and the third hypothesis is supported: the risk of positive exchange rate fluctuations has a positive and significant impact on the cost of debt.
Keywords
Quality of discretionary accruals, Quality of non-discretionary accruals, the risk of exchange rate fluctuations, Cost of debt
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