Strategic Disclosures of Litigation Loss Contingencies When Customer-Supplier Relationships Are at Risk

We appreciate the helpful comments from two anonymous reviewers, Francesco Bova, Jeffrey Callen, Sudipto Dasgupta, Luminita Enache, Christian Hofer, Ole-Kristian Hope, Wenli Huang (JCAE discussant), Kai Wai Hui, Hai Lu (CAAA discussant), Partha Mohanram, Donald Monk (FARS discussant), Don Pagach (AAA discussant), Antonio Parbonetti (EAA discussant), Atul Rai, Vernon Richardson, Peter G. Szilagyi (CICF discussant), Baohua Xin, Zheng Wang, Terry Warfield, T. J. Wong (editor), Luo Zuo, and participants at the 2013 American Accounting Association Annual Meeting, the 2013 Canadian Academic Accounting Association Annual Meeting, the 2013 MIT Asia Conference in Accounting, the 2014 China International Conference in Finance, the 2014 JCAE Symposium, the 2014 AAA Financial Accounting and Reporting Section Midyear Meeting, the 2015 European Accounting Association Annual Congress, and at Arizona State University, Brock University, The Chinese University of Hong Kong, University of Alberta, University of Nebraska–Lincoln, The University of Queensland, and University of Toronto research workshops. We thank Mahrukh Abid, Rafay Aman, Arif Amjad, Shiyuan Li, Sarah Richardson, and Yasir Shaikh for their able research assistance. We gratefully acknowledge the financial support from the Social Sciences and Humanities Research Council of Canada (SSHRC). Gordon D. Richardson thanks KPMG for their generous support.

Supplemental material can be accessed by clicking the link in Appendix C.

Editor's note: Accepted by T. J. Wong, under the Senior Editorship of Mark L. DeFond.