Customer monitoring of internal information processes and firms' external reporting / Delphine Samuels.

Format:

Book

Manuscript

Thesis/Dissertation

Author/Creator:

Samuels, Delphine, author.

Contributor:

Guay, Wayne R., degree supervisor.

Ittner, Christopher D., degree supervisor.

Hail, Luzi, degree committee member.

Taylor, Daniel J., degree committee member.

University of Pennsylvania. Department of Accounting, degree granting institution.

Language:

English

Subjects (All):

Penn dissertations--Accounting.

Accounting--Penn dissertations.

Local Subjects:

Penn dissertations--Accounting.

Accounting--Penn dissertations.

Physical Description:

viii, 96 leaves : illustrations ; 29 cm

Production:

[Philadelphia, Pennsylvania] : University of Pennsylvania, 2017.

Summary:

Customers monitor their suppliers' internal information processes to reduce uncertainty about the suppliers' ability to fulfill their commitments. In this paper, I argue that these monitoring procedures improve the suppliers' internal information, which in turn leads to higher quality external reporting. Using a dataset of U.S. government contracts, and employing both cross--sectional and within--firm research designs, I find a positive relation between government contracts and the quality of firms' external reporting environment. Consistent with government monitoring driving this relation, I find that firms improve their external reporting when they first start contracting with the government, and that the magnitude of the improvement varies predictably with contract characteristics and is largest for contracts that entail a greater degree of government scrutiny. Finally, I use the establishment of the Cost Accounting Standards Board (CASB) in 1970 as an exogenous shock to contractor monitoring, and find greater improvements in the external reporting environment among firms affected by the CASB's monitoring requirements. Overall, these results suggest that customer monitoring can play a role in shaping the firm's external reporting environment.

Notes:

Ph. D. University of Pennsylvania 2017.

Department: Accounting.

Supervisor: Wayne R. Guay; Christopher D. Ittner.

Includes bibliographical references.

OCLC:

1312239678