M.A. Thesis:

customer bargaining power on equity cost and earnings management

The transparency and desirability of financial information in relation to company sales, which is the basis of optimal economic decisions of investors, creditors and users in general, is of particular importance, and by disclosing real sales information, The risk of customer focus will be reduced. Users of financial reports can only rely on financial statements reflected in financial statements to provide transparent and reliable information. The purpose of this research is customer bargaining power on equity cost and earnings management. The research period was from 2012 to 2016, in which 88 companies were surveyed and 450 observations based on the year-company were created. In order to measure the bargaining power of major customers, criterion 0 and 1 and equity costs were also used by Olson Model (2005) and earnings management was used for earning real and accrual management. In this research, six hypotheses were tested and the results showed that the bargaining power of major customers has a negative and significant relationship with actual and accrual management. It was also found that the cost of equity is positively and significantly related to the management of earnings and liabilities. Finally, it became clear that the bargaining power of major customers moderated the relationship between the cost of equity to real and accruals management.

Keywords: Customer Bargaining Power, Equity Cost, Earnings Management.