According to my latest co-authored research with Dr Dharmendra Naidu that is published in a prestigious journal, “The Accounting Review”, TAR:
“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”, (Naidu and Ranjeeni, 2024).
Pleased to share that our research is available for free downloading and reading for a limited time. Please access our published paper in TAR using the DOI below:
https://doi.org/10.2308/TAR-2021-0652
Abstract
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.
Reference:
Dharmendra Naidu, Kumari Ranjeeni; Is Customers’ Financial Reporting Quality Associated with Suppliers’ Decision to Contract?. The Accounting Review 2024; https://doi.org/10.2308/TAR-2021-0652
Dharmendra Naidu, Congratulations! It was wonderful to collaborate with you :)
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