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Customer concentration, industry competition and accounting conservatism

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  • Wang, Shuxia
  • Wang, Chengzhi

Abstract

This study takes Chinese A-share listed companies from 2008 to 2023 as the research subjects to systematically explore the impact mechanism and boundary conditions of customer concentration on accounting conservatism. The findings reveal that customer concentration is significantly negatively correlated with accounting conservatism. In highly competitive industries, the negative impact of customer concentration on accounting conservatism is intensified. For private enterprises, lacking government credit endorsement, the negative impact of customer concentration on accounting conservatism is more pronounced than that of state-owned enterprises. Small enterprises, due to limited resources, are more likely to trigger aggressive accounting behaviors when facing high customer concentration-related operational risks.

Suggested Citation

  • Wang, Shuxia & Wang, Chengzhi, 2025. "Customer concentration, industry competition and accounting conservatism," Finance Research Letters, Elsevier, vol. 86(PE).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pe:s1544612325020215
    DOI: 10.1016/j.frl.2025.108767
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    References listed on IDEAS

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