The Interfirm Contracting Value of Management Accounting Information

Abstract

We examine how firms' management accounting information influences interfirm contract design. We theorize that comprehensive accounting information enables firms to design more complete contracts with suppliers, as indicated by increased issue inclusiveness and clause specificity. Survey data of Japanese manufacturing firms about the management of supplier relationships support the expectation that comprehensive management accounting information enables the development of more inclusive and specific contracts with suppliers. These contracts are also less subject to additional informal agreements between exchange partners. These results are consistent with the idea that better accounting information enables more complete contracting.

Factors Implanted in the Successful Implementation of Forensic Accounting: An Empirical Study on Academicians and Practitioners

“…Reliability was confirmed based on CR and alpha coefficients, while validity was assured based on factor loadings and AVE values. These findings are in line with previous studies in terms of the required cut-off values (Dekker, Kawai, & Sakaguchi, 2019;Mohammad, 2020;Pasch, 2019;Shkeer & Awang, 2019;Sinaga, Roespinoedji, Saudi, & Ghani, 2019).…”

Collaborative inter‐organisational relationships and management control change

“…Traditionally, management control research has not explored the lateral processing of information, which transcends legal organisational boundaries (Hopwood, 1996; Otley, 1994). However, following the widespread increase in inter‐organisational practices, management accounting research in this area has rapidly increased (see, for example, Caglio & Ditillo, 2008, 2012, 2021; Dekker et al, 2013, 2019; Grunwald‐Delitz et al, 2019; Kawai et al, 2013; Minnaar et al, 2017; Rad, 2017; Wang & Dyball, 2019). The stream of inter‐organisational research related to our study is concerned with how management control practices change as relationships span organisational boundaries (see, for example, Anderson et al, 2017; Chua & Mahama, 2007; Cooper & Slagmulder, 2004; Dekker, 2004; Håkansson & Lind, 2004; Mahama, 2006; Mouritsen & Thrane, 2006; Seal et al, 1999; Tomkins, 2001; van der Meer‐Kooistra & Vosselman, 2000; Vosselman & van der Meer‐Kooistra, 2009).…”

“…| 4571 2012, 2021Dekker et al, 2013Dekker et al, , 2019Grunwald-Delitz et al, 2019;Kawai et al, 2013;Minnaar et al, 2017;Rad, 2017;Wang & Dyball, 2019). The stream of inter-organisational research related to our study is concerned with how management control practices change as relationships span organisational boundaries (see, for example, Anderson et al, 2017;Chua & Mahama, 2007;Cooper & Slagmulder, 2004;Dekker, 2004;Håkansson & Lind, 2004;Mahama, 2006;Mouritsen & Thrane, 2006;Seal et al, 1999;Tomkins, 2001;van der Meer-Kooistra & Vosselman, 2000;Vosselman & van der Meer-Kooistra, 2009).…”

“…Trust is also formed as relationships develop (Caglio & Ditillo, 2008;Minnaar et al, 2017;Rad, 2017). An example of this can be seen in inter-organisational buyer-supplier relationships when buyers may choose to bypass market-based controls (Anderson et al, 2017;Dekker et al, 2013Dekker et al, , 2019Kawai et al, 2013;Wang & Dyball, 2019). This occurs when firms become confident in predicting each others' behaviours (Caglio & Ditillo, 2012;Tomkins, 2001).…”