The interfirm contracting value of management accounting information

Henri C. Dekker; Takaharu Kawai; Junya Sakaguchi

doi:10.2308/jmar-52058

The interfirm contracting value of management accounting information

Henri C. Dekker, Takaharu Kawai, Junya Sakaguchi

Research output: Contribution to Journal › Article › Academic › peer-review

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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.

Original language	English
Pages (from-to)	59-74
Number of pages	16
Journal	Journal of Management Accounting Research
Volume	31
Issue number	2
Early online date	1 Feb 2018
DOIs	https://doi.org/10.2308/jmar-52058
Publication status	Published - Jun 2019

Funding

We are grateful for the constructive comments provided on this study by Michal Mateˇjka (editor), two anonymous reviewers, Margaret Abernethy, Ge Bai, Jennifer Grafton, Tadafumi Kita, Yasushi Onishi, Stefan Schantl, Martijn Schoute, Naomi Soderstrom, Eelke Wiersma, and seminar participants at The Australian National University, The University of Melbourne, University of Twente, the 2016 SMS Preconference on Alliance Governance in Berlin, the 2016 Manufacturing Accounting Research Conference in Lisbon, the 2017 AAA Management Accounting Section Midyear Meeting in Puerto Rico, the 2017 EAA Conference in Valencia, and the 2017 Asia-Pacific Management Accounting Research Symposium at Seoul National University. This work was supported by JSPS (Japan Society for the Promotion of Science) KAKENHI grant numbers 17K04085 and 15K03796.

Funders	Funder number
2016 Manufacturing Accounting Research Conference in Lisbon
AAA Management
Asia-Pacific Management Accounting Research Symposium at Seoul National University
Strategic Management Society
Australian National University
Japan Society for the Promotion of Science	15K03796, 17K04085
University of Melbourne
University of Twente

Keywords

Contract design
Interfirm relationships
Management accounting information

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.2308/jmar-52058

The interfirm contracting value of management accounting informationFinal published version, 153 KBLicence: Article 25fa Dutch Copyright Act

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The interfirm contracting value of management accounting information

Abstract

Funding

Keywords

UN SDGs

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