| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5086817 | Journal of Accounting and Economics | 2012 | 21 Pages |
Abstract
⺠We argue that a firm's suppliers and customers prefer it to account more conservatively. ⺠We predict that a firm meets this demand for accounting conservatism when suppliers or customers have bargaining advantages. ⺠We show that when a firm's suppliers or customers have greater bargaining power, the firm recognizes losses more quickly. ⺠Our findings support the contracting explanation for accounting conservatism.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
Kai Wai Hui, Sandy Klasa, P. Eric Yeung,