Sales Order Backlog and Credit Ratings

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dc.citation.volumeLatest Articles
dc.contributor.authorHabib A
dc.contributor.authorRanasinghe D
dc.contributor.authorBhuiyan MBU
dc.date.accessioned2024-05-21T02:46:52Z
dc.date.available2024-05-21T02:46:52Z
dc.date.issued2024-05-05
dc.description.abstractThis study examines the association between sales order backlog and credit ratings. We posit that credit rating agencies consider order backlog as a positive signal about strong future demand and incorporate that into their rating decisions and provide higher ratings to firms with substantial order backlogs. However, being a non-GAAP, unaudited metric, order backlog could also reduce financial reporting quality and hence, credit ratings of firms. Using a sample of US firms from 1980 to 2017, we find a positive and significant association between order backlog and credit ratings, suggesting that order backlog serves as a valuable measure in credit rating assessment by providing positive signals about future earnings to rating agencies.
dc.description.confidentialfalse
dc.format.pagination1-27
dc.identifier.citationHabib A, Ranasinghe D, Bhuiyan MBU. (2024). Sales Order Backlog and Credit Ratings. Accounting in Europe. Latest Articles. (pp. 1-27).
dc.identifier.doi10.1080/17449480.2024.2345871
dc.identifier.eissn1744-9499
dc.identifier.elements-typejournal-article
dc.identifier.issn1744-9480
dc.identifier.urihttps://mro.massey.ac.nz/handle/10179/69628
dc.languageEnglish
dc.publisherTaylor and Francis Group on behalf of the European Accounting Association
dc.publisher.urihttps://www.tandfonline.com/doi/full/10.1080/17449480.2024.2345871
dc.relation.isPartOfAccounting in Europe
dc.rights(c) 2024 The Author/s
dc.rightsCC BY-NC-ND 4.0
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/
dc.subjectorder backlog
dc.subjectcredit ratings
dc.subjectdiscretionary accruals
dc.titleSales Order Backlog and Credit Ratings
dc.typeJournal article
pubs.elements-id488917
pubs.organisational-groupOther
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