Relationship-Specific Investments and Earnings Management: Evidence on Corporate Suppliers and Customers

Raman, Kartik; Shahrur, Husayn

doi:10.2308/accr.2008.83.4.1041

Cited by 471 publications

(338 citation statements)

References 66 publications

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“…We find that the quality of information is better for a company with a high leverage. This result is significant at the 5% level for the modified Jones model (1995), and Raman and Shahrur, (2008) and 10% for the model of Kothari et al (2005). The same result is obtained by Becker et al, (1998).…”

Section: Use Of Sub-indices Of Governancesupporting

confidence: 74%

“…At this study, we tried to find the relationship between the system of corporate governance and the quality of financial information approximated by discretionary accruals measured by three estimation models (Dechow et al, 1995;Kothari et al, 2005 andRaman andShahrur, 2008).…”

Section: Resultsmentioning

confidence: 99%

“…The discretionary accruals are valued using an estimation model (Jones, 1991;Dechow, Sloan andSweeney, 1995, Kothari et al, 2005;Shahrur and Raman, 2008). According to Francis, et al (2005), a higher level of discretionary accruals report low profits and a higher information risk to investors (Ashbaugh, Collins, LaFond, 2004).…”

Section: Financial Information Qualitymentioning

confidence: 99%

“…Francis et al, (2008). The abnormal accruals are determined by the difference between total accruals and non discretionary accruals estimated using a model proposed by the literature as the model used by Jones (1991), Dechow et al (1995), Dechow (2002), Kothari and al (2005) and Raman and Shahrur (2008).…”

Section: The Presentation Of the Sample And Datamentioning

confidence: 99%

“…In this study, we use discretionary accruals approximated by the modified Jones model (1995), Kothari et al (2005) and Raman and Shahrur (2008) as an indicator of the quality of financial reporting.…”

Section: Introductionmentioning

confidence: 99%

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Corporate Governance System and Quality of Financial Information

Jouini

2013

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Section: Use Of Sub-indices Of Governancesupporting

confidence: 74%

Section: Resultsmentioning

confidence: 99%

Section: Financial Information Qualitymentioning

confidence: 99%

Section: The Presentation Of the Sample And Datamentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Corporate Governance System and Quality of Financial Information

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2013

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How to deal with customer and supplier concentration to attain sustainable financial growth? The role of business strategy

Ahsan

Mirza²,

Gull

et al. 2023

Bus Strat Env

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For effective supply chain management, firms should focus on the relationship with their immediate stakeholders in the supply chain, namely, suppliers (upstream) and customers (downstream). This study investigates the impact of customer and supplier concentration as well as business strategy on sustainable financial growth, using financial data of 2021 Chinese non‐financial firms listed from 2006 to 2020. Additionally, it explores the moderating effect of business strategy on the relationship between customer and supplier concentration and sustainable financial growth. We find that higher customer and supplier concentration weakens the bargaining power of Chinese firms, which reduces their financial growth. However, an appropriate business strategy can help such firms achieve sustainable financial growth. We find that an aggressive business strategy moderates the negative impact of supplier concentration, while a defensive business strategy moderates the negative impact of customer concentration on financial growth. Finally, our results for the direct impact of customer and supplier concentration as well as business strategy hold for state‐owned and non‐state‐owned firms. However, we find differences regarding the moderating impact of business strategy between state‐owned and non‐state‐owned firms. Our results are robust to time and industry fixed effects, alternate proxies of financial growth and regression techniques.

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Major overseas customers and corporate decoupling of environmental responsibility: Evidence from China

Chen,

Zhao

2024

Bus Strat Env

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In this study, we examine firms' decoupling of how they communicate about environmental responsibility and what they actually do in terms of environmental responsibility. We argue that this decoupling is driven by their trade relations with major overseas customers. Specifically, we propose that major overseas customers increase the likelihood of corporate environmental decoupling. We test our argument in a sample of Chinese industrial firms for the period 2007–2012. We find that the higher the proportion of sales to major overseas customers, the more likely supplier firms are to decouple environmental responsibility, that is, to obtain ISO 14001 environmental management system certification but not significantly reduce their pollution emissions. Heterogeneity analyses show that the impact of major overseas customers is more significant when these customers are larger, when the customers are located in Western developed countries, when the economic relationship between supplier firms and major overseas customers is more important to supplier firms, when supplier firms are more short‐sighted, and when supplier firms are in more competitive product markets. Our findings advance research on corporate environmental management and on corporate major customers by providing large‐scale empirical evidence of the drivers of the decoupling of corporate environmental responsibility and the impact of major customers on corporate environmental behavior.

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Relationship-Specific Investments and Earnings Management: Evidence on Corporate Suppliers and Customers

Cited by 471 publications

References 66 publications

Corporate Governance System and Quality of Financial Information

Corporate Governance System and Quality of Financial Information

How to deal with customer and supplier concentration to attain sustainable financial growth? The role of business strategy

Major overseas customers and corporate decoupling of environmental responsibility: Evidence from China

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