Research On The Effect Of Bargaining Power Of Purchasing On Firm Value

With the development of the world economy, the competition between enterprises has gradually evolved into the competition between supply chains. The business objectives of the enterprise also slowly transformed to maximize the firm value. To handle every link in the supply chain is the survival of the enterprise in the fierce competition. In the supply chain, the bargaining power of the purchasing enterprise plays a vital role in the purchasing process. In the long run, the bargaining power will have a certain effect on the purchasing firm value. For GEM listed company which has the relatively small scale and weak risk resisting ability is all the more so. Therefore, this article draws on domestic and foreign scholars’ related work about the study on the relationship between the bargaining power of the purchasing enterprise and the firm value to analyze and research this subject of GEM listed company.First of all, define the concepts of the bargaining power and firm value and investigate the correlation between these two variables using the bargaining theory, Porter competition theory and supply chain management theory. At last based on theoretical analysis put forward the research hypotheses: the bargaining power of the purchasing enterprise is stronger, the firm value is higher; The effect of different degree of the bargaining power of enterprise on the firm value is different; when the bargaining power of enterprise is at a lower level, the effect on the firm value is not obvious; when the bargaining power of enterprise is at a high level, the effect on the firm value is more significant.Then, according to the theoretical analysis, select the data of the 2009-2013 in Shanghai and Shenzhen A-share GEM listed company as study samples and establish regression model. Build up the regression analysis model and define every factor the model need.Finally, carry on the empirical study of the relationship between the bargaining power of purchasing and firm value. The results of the empirical research show that the bargaining power of purchasing and the firm value is positive correlation, but the relationship is not significant for the overall sample; when the supplier concentration is 40%-60%, namely the bargaining power of purchasing enterprise is moderate, the effect on the firm value is more significant. On the basis of the conclusion of empirical research, this paper puts forward policy suggestion to control purchasing bargaining power from the angle of purchasing enterprise.