Abstract
Effective December 16, 2018, Accounting Standards Update (ASU) No. 2016–02 requires lessees to record most leases on their balance sheets as right-of-use (ROU) assets with corresponding lease liabilities. Drawing on resource dependence theory, this study examines the impact of ASU 2016–02 on firm efficiency and the moderating role of supply chain network properties (eigenvector centrality, betweenness centrality, and interconnectedness). Using a sample of 9,571 firms and 139,041 firm-year observations from 1971 to 2022, fixed-effects regression analyses reveal that ASU 2016–02 is positively associated with firm efficiency. Eigenvector centrality strengthens this relationship, while interconnectedness weakens it. However, betweenness centrality does not significantly moderate the relationship. These findings contribute to the literature by highlighting the role of accounting standards and supply chain network structure in shaping firm efficiency. The study offers practical insights for managers and stakeholders on navigating the impact of lease accounting changes and leveraging supply chain network properties to enhance operational efficiency.
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