Is Customers' Financial Reporting Quality Associated with Suppliers' Decision to Contract?
成果类型：
Article
署名作者：
Naidu, Dharmendra; Ranjeeni, Kumari
署名单位：
Monash University
刊物名称：
ACCOUNTING REVIEW
ISSN/ISSBN：
0001-4826
DOI：
10.2308/TAR-2021-0652
发表日期：
2021
页码：
325-350
关键词：
摘要：
Using a unique hand-collected dataset of purchase obligations, we find that customers' financial reporting quality is positively associated with future supply contracts, indicating that suppliers are more willing to contract with customers who provide them with better information. Further, the association between customers' financial reporting quality and future supply contracts is stronger for customers with strong bargaining power, which is consistent with suppliers relying more on financial reports when they have less access to customers' private information. Collectively, our results suggest that customers' financial reporting quality plays an important role in influencing suppliers' decisions to contract with customers for the future supply of goods and services.