The Relation Between Customer-Base Concentration and R&D Decision: Evidence from American Software Industry

  • 郭 建容

Student thesis: Master's Thesis


The objective of this study is to explore whether customer-base concentration has effects on a firm’s accounting R&D decisions In this study I use publicly listed firms in American software industry as sample to examine whether firms with more customer-base concentration will mitigate the possibility of a firm undertaking earnings management by real earnings management of R&D investments and capitalizing R&D investments Since major customers with higher bargaining power over the firm I find that a firm with more customer-base concentration will be less likely to cut R&D expenditures and to capitalize R&D expenditures to enhance earnings Furthermore I investigate whether the R&D accounting decisions will be impacted when the specific supply chain relationship is longer However I find that in long term relationship the firm may avoid losses from hold-up problem and high switching costs to manipulate accounting performance by real earnings management and selecting R&D capitalization decision
Date of Award2014 Jul 4
Original languageEnglish
SupervisorChaur-Shiuh Young (Supervisor)

Cite this