Theme: CRM Systems and Management Revenue Forecasts: Evidence from ASC 606

Speaker: Professor Vernon Richardson, Walton College of Business, University of Arkansas

Host: Associate Professor Xianjue Wang, School of Accounting, Southwestern University of Finance and Economics

Time: 10:00a.m.-11:30a.m., April 10, 2025, Thursday

Place: Room 650, Chengzheng Building, Liulin Campus

Sponsor: Academic Research Office, School of Accounting

Introduction of the speaker:

Professor Vernon Richardson is a Distinguished Professor and Chair of the Department of Accounting at the Walton College of Business, University of Arkansas, the United States. His research focuses on the intersection of information technology, big data analytics, and accounting, and he is one of the most outstanding scholars in the field of accounting information systems in the United States.

His research achievements have been published in UTD 24 journals such as The Accounting Review, Journal of Accounting and Economics, MIS quarterly, Journal of Operations Management, Journal of Marketing, and Journal of operations Management, as well as FT50 journals such as Contemporary Accounting Research and Journal of Management Information Systems. He once served as the Editor-in-Chief of The Accounting Review and is currently the Editor-in-Chief of Accounting Horizons.

In terms of teaching, Professor Richardson has published textbooks such as Accounting Information Systems and Data Analytics for Accounting. Among them, the textbook Data Analytics for Accounting is an original textbook in the field of big data accounting and has been widely used both at home and abroad.

Abstract:

This lecture that investigates the role of Customer Relationship Management (CRM) systems in facilitating firms’ transition to ASC 606 and enhancing voluntary disclosures, particularly management revenue forecasts. We find that firms with more extensive CRM implementation scope are more likely to issue revenue forecasts and do so more frequently following ASC 606 adoption. Moreover, these firms provide more accurate and precise forecasts, suggesting that CRM systems enhance the quality of firms’ internal information for revenue recognition and disclosure. These results highlight the important role of front-end IT solutions in improving firms’ ability to comply with new accounting standards and provide more reliable financial information to stakeholders.