PURPOSE: This study aims to investigate the effect of the audit committee on the relationship between trade credit and supplier stability among companies listed on the Tehran Stock Exchange. DESIGN/METHODOLOGY/APPROACH: The library method was used to collect data related to the theoretical background of the study. Financial statement data were collected from a sample of 140 companies listed on the Tehran Stock Exchange over the period 2017–2024. The hypotheses were tested using a multivariate regression model based on panel data with the random-effects method, all statistical analyses were performed using Eviews software.

FINDINGS: The results obtained from testing the research hypotheses showed that trade credit has a significant positive effect on supplier stability. On the other hand, the research results have shown that audit committee independence and audit committee financial expertise strengthen the relationship between trade credit and supplier stability

RESEARCH IMPLICATIONS: The independence of the audit committee and the financial expertise of the audit committee increase the positive relationship between commercial credit and supplier stability. the size of the audit committee does not have a significant effect on the relationship between commercial credit and supplier stability.

ORIGINALITY/VALUE: The effect of commercial credit on supplier stability was examined, then the effect of audit committee on the relationship between commercial credit and supplier stability studied, which is innovative in terms of simultaneously examining the research variables in the model.