| Summary: | 碩士 === 國立成功大學 === 會計學系 === 102 === 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.
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