TY - JOUR
T1 - Accounting Comparability and Customer Concentration
AU - Chircop, Justin
AU - Nguyen, Nhat Q (Nate)
AU - Nguyen, Tri Tri
PY - 2024/9/14
Y1 - 2024/9/14
N2 - This study examines the relationship between accounting comparability and customer concentration. Higher accounting comparability enhances customers’ ability to evaluate suppliers’ performance against their industry peers. This allows suppliers to attract more customers, hence reducing their customer concentration. We find a negative association between accounting comparability and customer concentration. This relation is stronger for firms with better profitability, higher information asymmetry, and more innovations. By establishing a link between accounting comparability and customer concentration, our study provides additional evidence about the consequences of accounting comparability and is helpful to both academics and practitioners.
AB - This study examines the relationship between accounting comparability and customer concentration. Higher accounting comparability enhances customers’ ability to evaluate suppliers’ performance against their industry peers. This allows suppliers to attract more customers, hence reducing their customer concentration. We find a negative association between accounting comparability and customer concentration. This relation is stronger for firms with better profitability, higher information asymmetry, and more innovations. By establishing a link between accounting comparability and customer concentration, our study provides additional evidence about the consequences of accounting comparability and is helpful to both academics and practitioners.
UR - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4853922
UR - https://doi.org/10.1016/j.jaccpubpol.2024.107244
U2 - 10.1016/j.jaccpubpol.2024.107244
DO - 10.1016/j.jaccpubpol.2024.107244
M3 - Article
SN - 1873-2070
JO - Journal of Accounting and Public Policy
JF - Journal of Accounting and Public Policy
ER -