An Empirical Research On Customer Concentration And Internal Control Quality

Because of " Enron " ? "WorldCom" ? " Qiong Min Yuan " ? " Green Earth " and other financial scandals,seriously damaged the interests of investors,disrupted the market order,and have a bad influence on the society,which caused the discussion and reflection of the community,but also caused great concern in the theoretical and practical sessions.In 2002,the United States enacted the Sarbanes-Oxley Act(SOX),requiring all listed companies in the United States to disclose the information of internal control,highlighting the importance of internal control.In 2006,the Shanghai Stock Exchange and the Shenzhen Stock Exchange issued the "internal control guidelines for listed companies",requiring listed companies to disclose internal control,In 2008,the five ministries jointly issued the "basic norms of enterprise internal control",In 2010,promulgated the "enterprise internal control supporting guidelines",thus,the internal control system was informed.Effective internal control is very important to improve the operation efficiency and maintain the healthy development of enterprises.Therefore,internal control has become the focus of capital market and investors.The literature has been made a lot of achievements on the quality of internal control,but few empirical studies,and empirical studies have focused on the influencing factors,such as the company's internal governance factors,external auditors and media supervision etc.;however,there are few researches on the non-Financial stakeholders,especially the effect of the customer's supervision and certification on the quality of internal control.Because of the particularity of China during the period of transition economy,the relationship between suppliers and customers has become an important choice for enterprises,the customer has played a very important role in the business activities and the formulation of the strategy,which provides an opportunity for our research.On the basis of transaction cost theory,asymmetric information theory and stakeholder theory,we take 2008-2014 Shanghai and Shenzhen A shares of manufacturing listed companies as samples,through descriptive statistical analysis,correlation analysis,regression analysis and other methods,studies the non-financial stakeholders(customers)on the impact of the company's internal control quality?Because of the integrity,detailed and authoritative of DIB internal control index,We selects it as a measure of internal control quality.At the same time,we consider different property rights and different bargaining power on the qualityof internal control.The empirical results show that: firstly,customer concentration is positively correlated with the quality of internal control;secondly,further research results show that the positive correlation between the non state-owned enterprises more significantly;thirdly,according to the previous research to distinguish different bargaining power of enterprises,the result is the low bargaining power group,positive correlation is more significant;finally,put forward relevant suggestions according to the empirical results.Generally speaking,customer concentration will affect the quality of internal control,we should pay more attention to the role of large customers in the process of business management and investment.