The Impact of Accounting Comparability and Customer Concentration with Emphasis on the Moderating Role of Profitability and Information Asymmetry
Subject Areas : Supply Chain Management
Saeedeh Miarsadeghi
1
,
nemat rostami Mazouei
2
*
1 -
2 - Department of Accounting, Chalous Branch
Keywords: Accounting Comparability, Customer Concentration, Information Asymmetry, Profitability,
Abstract :
Abstract
Accounting researchers map financial statements and interpret economic results using accounting figures. According to this perception, two companies will have comparable financial statements only if their mapping methods are identical. Customers seek to make informed decisions through high-quality accounting information, and the comparability of accounting information is not only a primary characteristic that improves the quality of accounting information but has also always been considered one of the key ways to enhance the decision-usefulness of accounting information. The purpose of this article is to investigate the impact of financial statement comparability on customer concentration, with an emphasis on profitability and information asymmetry. The underlying assumption is that higher accounting comparability enhances customers' ability to evaluate a supplier's performance against its industry peers. This allows suppliers to attract more customers and thereby reduce their customer concentration. For this purpose, the data from the financial statements of companies listed on the Tehran Stock Exchange during the period 2018 to 2023 were collected. Data from 150 company-year observations were gathered and analyzed using EViews 9 software.
The findings from testing the research hypotheses showed that the comparability of financial statement does not have a significant relationship with customer concentration; however, the moderating role of information asymmetry influences this relationship. Based on the results of this research, improving the level of financial statement comparability reduces information acquisition costs and decreases information asymmetry. Accordingly, suppliers with higher information asymmetry can benefit more from comparability to achieve a greater reduction in concentration.
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