The Interfirm Contracting Value of Management Accounting Information

Henri Dekker, Takaharu Kawai

Research output: Contribution to journalJournal articleResearchpeer-review


We examine how firms’ management accounting information influences interfirm contract design. We theorize that comprehensive accounting information enables firms to design more complete contracts with suppliers, as indicated by increased issue inclusiveness and clause specificity. Survey data of Japanese manufacturing firms about the management of supplier relationships support the expectation that comprehensive management accounting information enables the development of more inclusive and specific contracts with suppliers. These contracts are also less subject to additional informal agreements between exchange partners. These results are consistent with the idea that better accounting information enables more complete contracting.
Original languageEnglish
JournalJournal of Management Accounting Research
Issue number2
Pages (from-to)59-74
Number of pages16
Publication statusPublished - Jan 2019
Externally publishedYes


  • Contract design
  • Interfirm relationships
  • Management accounting information

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