The Profitability and Pricing of Major Customers

Marty Gosman, Trish Kelly, Per Olsson and Terry Warfield ()
Additional contact information
Marty Gosman: Quinnipiac College
Trish Kelly: Vanderbilt University
Per Olsson: Duke University
Terry Warfield: University of Wisconsin, Madison

Review of Accounting Studies, 2004, vol. 9, issue 1, No 5, 117-139

Abstract: Abstract 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.

Keywords: financial reporting; intangible assets; analysis; valuation (search for similar items in EconPapers)
Date: 2004
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1023/B:RAST.0000013631.48714.c1 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:reaccs:v:9:y:2004:i:1:d:10.1023_b:rast.0000013631.48714.c1

Ordering information: This journal article can be ordered from
http://www.springer.com/accounting/journal/11142

DOI: 10.1023/B:RAST.0000013631.48714.c1

Access Statistics for this article

Review of Accounting Studies is currently edited by Paul Fischer

More articles in Review of Accounting Studies from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().