An Empirical Study On The Relationship Between Supplier/Customer Concentration And Firm's Earnings Smoothing

Suppliers and customers are important stakeholders of enterprises,and they play a decisive role in the operation and strategy of enterprises(Freeman,1984).Dyer & Singh(1998)points out that stable supplier or customer relationship can bring huge profits to the enterprise,and help to realize the maximization of enterprise value.With the Commission to increase the disclosure requirements of the company's top five suppliers / customers,people gradually realized that the upstream and downstream suppliers and customers are an important strategic resource.The enterprise provides one of the objectives of financial reporting is to meet the needs of users of financial report,Ball & Brown(1968)the results of the study show that more than half of all the information content of the information content of earnings figures accounted for each corporate annual report provided by the user,important suppliers and customers also is the enterprise financial report,enterprises in order to maintain stable relationship with key suppliers the transaction between the customer,may steady operating conditions and financial status of good information to the supplier / customer transfer through the way of earnings smoothing(Maksimovic & Titman,1991).Therefore,this paper focuses on the relationship between supplier / customer concentration and earnings smoothing.This article from the transaction cost theory,relationship specific assets investment theory,asymmetric information theory and signaling theory,with 2008-2015 years A shares of all listed companies in the manufacturing industry as the research sample,from the previous study to build a model,and use descriptive statistical analysis,correlation analysis and multiple regression analysis method firstly studies the supplier customer concentration effects on earnings smoothing behavior,because the relationship between our government and some enterprises more closely,closely related to the enterprise can get more scarce resources from the government,so this paper also studies the influence of political association of property rights and private enterprises in the supplier / customer concentration with earnings smoothing behavior.The empirical results show that: firstly,the concentration degree of supplier or customer concentration is larger,more corporate earnings smoothing;secondly,when other conditions remain unchanged,compared with the state-owned enterprises,the positive relationship between private enterprise supplier / customer concentration and corporate earnings smoothing behavior more significantly;finally,in private enterprises,compared with political association of enterprises,a positive correlation between no politicalconnection corporate supplier / customer concentration and corporate earnings smoothing behavior is more significant.This article is about the supplier / customer concentration Empirical Study on corporate earnings smoothing behavior,not only enrich our non-financial stakeholders(suppliers and customers)of the relevant literature,but also enriched the earnings smoothing factors affecting the behavior of enterprises,to a certain extent,promote the study of supplier / customer concentration and enterprise earnings smoothing behavior,but also on the market constantly improve its operation mechanism to put forward further requirements.