Research On Effects Of The Bargaining Power To The Performance Of Enterprises

With the development of economy and the fierce competition between enterprises, the traditional competition between enterprises has evolved into the competition between supply chain and supply chain, and the competition between the supplier and customer enterprises in the supply chain is especially fierce. According to Michael porter’s competition model, enterprise bargaining power with suppliers and customers is a relation of competition, the competition relationship affects the profitability of the enterprise. Therefore, improving the competitiveness of the enterprises among the enterprises in the supply chain is great significance for the survival and development of the enterprise. In this paper, using The Shanghai stock exchange and Shenzhen stock exchange of 2014 manufacturing empirical data of listed companies, the relationship between bargaining power and corporate performance is researched on the basis of the theory of supply chain. This paper researches bargaining power, and hope to get such a conclusion what the effect of bargaining power to corporate performance is.In this study, using the concentration of suppliers and accounts payable turnover ratio represent the enterprise bargaining power to suppliers, using the concentration of customers and accounts receivable turnover ratio represent enterprise bargaining power to customers, using return on net assets represent the enterprise performance, and joining the asset-liability ratio, the company size, inventory turnover and sales growth rate as control variable, this paper establishes the multivariate linear regression model and want to know whether suppliers and customers bargaining power have the effects on enterprise performance or not. Results of research are as follows:(1) The concentration of suppliers and concentration of customers have a negative correlation with corporate performance. The more the suppliers centralize, the better suppliers bargaining power is, and the worse corporate performance is; The more the customers centralize, the better customers bargaining power is, and the worse corporate performance is.(2) The accounts payable turnover and accounts receivable turnover have no obvious linear relationship with enterprise performance.(3) The four control variables of the asset-liability ratio, company size, inventory turnover and sales growth play a significant role in enterprise performance. Among them, the asset-liability ratio is negatively related to the enterprise performance; The company size, the inventory turnover and sales growth are positively related to the enterprise performance.These results indicate that our country enterprise can use the concentration of suppliers and the concentration of customers to represent the bargaining power. Although, the accounts payable turnover can give expression to the relationship between the enterprise and the supplier and the accounts receivable turnover can give expression to the relationship between the enterprise and the customer, they cannot be used to reflect the enterprise bargaining power of suppliers and customers. This shows that sales force is more important rather than cash power in negotiations between enterprise and other enterprise on the one hand; On the other hand this result also shows that China’s enterprises is still insufficient attention to cash management.Based on the above conclusions, there are some suggestions of improving the bargaining power and strengthening the cash management at the end of the paper.