Bargaining Power of Suppliers, Customers and Enterprise Accounting Conservatism Based on the Empirical Data of Listed Companies in China

摘要

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. 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. 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. 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. 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. Besides, this study provides some helpful suggestions on accounting conservatism when they sign contracts with suppliers and customers.