Abstract
In this study, we investigate whether and how the adoption of online sales impacts firms’ external financial reporting. We manually identify 353 listed Chinese firms that sell their products and services on e-shopping platforms during the period of 2007-2020. We hypothesize and find consistent evidence that after adopting online sales, firms enjoy faster and more accurate financial reporting, a better alignment between operating cash flow and earnings, and a better matching of contemporaneous revenue and expense numbers. We provide further evidence that shortened operating cycles due to faster receivable turnover and improved internal information functionalities caused by online sales help to explain the improved speed and accuracy of financial reporting after the adoption. Finally, we show that online sales adoption increases the smoothness and value relevance of earnings.
| Original language | English |
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| Publication status | Published - 21 Jun 2024 |
| Event | The Eleventh International Conference of the Journal of International Accounting Research - Regent Taipei Hotel, Taipei, Taiwan, Province of China Duration: 20 Jun 2024 → 22 Jun 2024 https://aaahq.org/Meetings/2024/JIAR (Conference website) https://aaahq.org/portals/0/documents/meetings/2024/JIAR/2024%20JIAR%20conference%20program%20_Abstract.pdf (Conference abstract) https://aaahq.org/portals/0/documents/meetings/2024/JIAR/2024%20JIAR%20conference%20program.pdf (Conference program) |
Conference
| Conference | The Eleventh International Conference of the Journal of International Accounting Research |
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| Abbreviated title | JIAR |
| Country/Territory | Taiwan, Province of China |
| City | Taipei |
| Period | 20/06/24 → 22/06/24 |
| Other | The goal of this conference is to expand the diversity and scope of international accounting research, through increased understanding and awareness of the challenges and opportunities of international accounting. Original and rigorous research will provide academics, practitioners, and regulators with deeper insights into international accounting issues. Journal of International Accounting Research (JIAR) continues to welcome innovative and high-quality research that examines how accounting data affects capital market participants. Papers that address interesting and innovative research questions in all areas are welcomed. |
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