Journal article
Financial Benefits from JIT Adoption: Effects of Customer Concentration and Cost Structure
The Accounting review, Vol.71(2), pp.183-205
04/01/1996
Abstract
This paper examines whether firms exhibiting improved inventory utilization subsequent to JIT adoption achieve a corresponding increase in their Return on Assets (ROA) and whether firm-specific characteristics affect such ROA responses. On average, we do not find a significant ROA response to JIT adoption. Cross-sectionally, JIT adopting firms with a diffuse customer base have a superior ROA response relative to both adopting firms with a high degree of customer concentration and their matched control firms. Evidence is consistent with a superior ROA response for firms with lower inventory turns in the adoption year, particularly for work-in-process inventory. Data do not support the prediction that firms with lower committed costs will report a greater ROA response than firms with a higher proportion of committed costs.
Details
- Title: Subtitle
- Financial Benefits from JIT Adoption: Effects of Customer Concentration and Cost Structure
- Creators
- Ramji BalakrishnanThomas J. LinsmeierMohan Venkatachalam
- Resource Type
- Journal article
- Publication Details
- The Accounting review, Vol.71(2), pp.183-205
- Publisher
- American Accounting Association
- ISSN
- 0001-4826
- eISSN
- 1558-7967
- Language
- English
- Date published
- 04/01/1996
- Academic Unit
- Accounting
- Record Identifier
- 9984380557402771
Metrics
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