Journal
REVIEW OF ACCOUNTING STUDIES
Volume 9, Issue 1, Pages 117-139Publisher
SPRINGER
DOI: 10.1023/B:RAST.0000013631.48714.c1
Keywords
financial reporting; intangible assets; analysis; valuation
Categories
Ask authors/readers for more resources
We examine the profitability and valuation of retail firms identified by suppliers as major customers, using major customer relationships to proxy for unrecorded organizational-capital intangibles. Major customers have higher operating profitability and profitability persistence, with the sources of the higher profitability consistent with purported advantages of supply chain arrangements. The pricing of major customers is consistent with the market recognizing the level and over-time properties of operating profitability. Together, these results suggest that investors understand the profitability effects of unrecorded organizational intangible assets and that financial statement analysis can be used to further examine the valuation effects of such intangibles.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available