![]() ![]() Open Access This is an open access article distributed under the CC BY-NC license ( ). Besides, this study provides some helpful suggestions on accounting conservatism when they sign contracts with suppliers and customers. This study not only broadens the fields of accounting conservatism factors, but also provides a theoretical and empirical support for the impact of suppliers’ and customers’ bargaining power on the accounting conservatism under China’s market economy background. The results showed that: bargaining power of suppliers and customers and corporate accounting conservatism significant negative correlation, that is, the stronger the bargaining power of customers, and corporate accounting conservatism weaker however, there is no significant correlation between the supply and enterprise bargaining power accounting conservatism. The Bargaining Power of Suppliers, one of the forces in Porters Five Forces Industry Analysis Framework, is the mirror image of the bargaining power of buyers and refers to the pressure that suppliers can put on companies by raising their prices, lowering their quality, or reducing the availability of their products. In this paper, we studied the empirical data of the China's listed companies in 2011-2013 to explore the relationship between bargaining power of suppliers and customers and corporate accounting conservatism. Accounting conservatism is an important measure of the quality of corporate financial reporting, which can help coordinate the potential conflicts between suppliers and customers and promote the two sides to achieve mutually beneficial. ![]() Suppliers and customers lie in the upstream and downstream of the supply chain, and are the providers and exchangers of the essential resource which the enterprise’s survival and development must depend on. ![]()
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