Customer Tenure and the Ability to Meet or Beat Sales Forecast

• Main Authors: Jhih-YingLin, 林志穎
• Other Authors: Jeng-Fang Chen
• Format: Others
• Language: en_US
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/51996487183733036782

碩士 === 國立成功大學 === 會計學系碩博士班 === 98 === This study examines the relation between customer tenure and a firm’s ability to use discretionary revenues to meet or beat analysts’ earnings forecasts. The empirical evidence shows that firms with longer customer tenure are more likely to report level of discretionary revenues that allow them to meet or beat sales forecast. The result suggests that long-term customer relationship may be detrimental to earnings quality. Further, the results show that the positive relation between customer tenure and the use of discretionary revenues to meet or beat sales forecast is more severe when the firm and its customer share the same auditor.