University of Isfahan Journal of Asset Management and Financing 2383-1189 4 3 2016 09 22 Investigating the Effect of Financial Reporting Quality on the Relation among Collateral Assets, Financing and Investment Investigating the Effect of Financial Reporting Quality on the Relation among Collateral Assets, Financing and Investment 109 124 20650 10.22108/amf.2016.20650 FA Abbas Aflatooni Bu-Ali Sina University of Hamedan Journal Article 2016 11 21 This research investigates the relation between collateral assets and the firms' financing and investments in 247 firms listed in the Tehran Stock Exchange from 2003 to 2013 and examines the effect of financial reporting quality on this relation. Moreover, the impact of collateral assets on the financial reporting quality is taken into consideration. The results indicate that increase in collateral assets increases the amount of financing via debts and as a result increases firms' investments. Also, the increase in financial reporting quality undermines the relation between collateral assets and the amount of firms' financing and investments. Finally, with the increase in collateral assets, firms reduce their financial reporting quality. Results are compatible with the theoretical models based on the notions of adverse selection and moral hazard. <br /> <br />  This research investigates the relation between collateral assets and the firms' financing and investments in 247 firms listed in the Tehran Stock Exchange from 2003 to 2013 and examines the effect of financial reporting quality on this relation. Moreover, the impact of collateral assets on the financial reporting quality is taken into consideration. The results indicate that increase in collateral assets increases the amount of financing via debts and as a result increases firms' investments. Also, the increase in financial reporting quality undermines the relation between collateral assets and the amount of firms' financing and investments. Finally, with the increase in collateral assets, firms reduce their financial reporting quality. Results are compatible with the theoretical models based on the notions of adverse selection and moral hazard. <br /> <br />  https://amf.ui.ac.ir/article_20650_782eb46aa168bab8ff596fb8dfcde793.pdf