Impact of Financial Reporting Quality on Getting Loans for Nascent Entrepreneurs: A Case Study Newly Selected Indian Textile Companies Shayf Abdulfatah Abdullah Abdulkareem1,*, Prof. Chaudhary Asiya2 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 Purpose 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. Design/Methodology/Approach 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. Findings 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. Practical Implications 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. Top Keywords Financial reporting quality, Getting Loans, Nascent Entrepreneurs. Top |