Customer Concentration,Environment Uncertainty And Bank Loan

In recent years,under the background of China's economic reform,our government has taken active measures to alleviate the impact of corporate transformation on corporate credit financing.In February 2016,the eight ministries led by the People's Bank of China issued policy documents,clearly indicating that the supply chain is an important factor in the process of credit financing,and vigorously promoting the practice of "supply chain finance".It can be seen from the realistic background that the emergence of the concept of "supply chain finance"has quietly brought new thinking to solve the problem of corporate bank credit financing.The financing activities in the enterprise capital market are already related to the supply chain.Supply Chain relationship has an important influence on the bank credit of the enterprise.Customer is the basis of customer concentration.Customer concentration embodies the enterprise customer information,and is an important feature of supply chain relationship.However,the research data related to"supply chain finance" is difficult to be collected.Therefore,the paper makes customer concentration as the entry point,and then explores the impact of customer concentration on corporate bank borrowing.The operation of companies cannot be separated from the specific environment.The dependable relation between the company and its customers is different in different levels of environmental uncertainty.Further,the paper makes the operating environment as the entry point,and explores whether the impact of customer concentration on corporate bank borrowing is different in the high level and low level of environment uncertainty.Under the present background,it is of great practical significance to study the relationship between customer concentration and bank loan.In theory,the bank needs to fully access the business information to reduce the risk faced.As the bank can't participate in the business management,it can't make the effective identification and selection of enterprise information.In order to obtain more credit support of the bank,enterprises need to choose a suitable signal to deliver the true and reliable information.The existing researches have selected the accounting information,accounting conservatism and other financial information characteristics,corporate governance,and political relations,bank relations and other corporate social capital as the signals to explore the question.However,little attention has been paid to customer concentration which is the important feature of supply chain relationship.Customer concentration is an important relationship between the enterprise and its customers in the supply chain,which can reflect the important information about the operation and profit of the business.The economic interdependence can convey the financial status of the enterprise to the capital market participants,so customer concentration is likely to have an important role in corporate bank borrowing.Based on the above reality and theoretical background and the framework of theories,and using empirical research methods,the paper makes customer concentration as the entry point.The proportion of sales of the top five customers disclosed in the annual report of listed companies is taken as the measure of customer concentration,all bank loans,long-term bank loan and short-term bank loan are taken as the measure of the scale of bank loan and the high environmental uncertainty dummy variable is used as the adjustment variable of the study.Based on the data of the manufacturing enterprises listed in Shanghai and Shenzhen from 2007 to 2015,firstly the paper makes the multiple regression analysis between customer concentration and bank loan scale to explore the effect of customer concentration on corporate bank loan.Furthermore,the paper analyzes the relationship between customer concentration and bank borrowing from the two aspects which are voluntary disclosure of customer information and proprietary investment of customer relationship.Moreover,the model with the interactive multiplication variable "DCC*HEU" is used to do the regression analysis with the whole sample data and the regression analysis is also separately made in the high and low environmental uncertainty.The second step aims to point out whether there is a difference in the effect of customer concentration on the bank loan in high and low environmental uncertainty.Finally,the following conclusions are drawn:Firstly,there is a positive correlation between customer concentration and corporate bank loan.That is,customer concentration will help enterprises to obtain more bank loans.Secondly,from the further analysis of the mechanism,it finds that the positive effect of customer concentration on corporate bank borrowing is due to the information effect of voluntary disclosure of customer information and the governance effect of customer relationship proprietary investment.Thirdly,the paper finds that in the high and low environmental uncertainty,the impact of customer concentration on the scale of bank loans is of heterogeneity.The positive correlation between customer concentration and bank loan is only significant in low environmental uncertainty,and is not significant in high environmental uncertainty.The main contributions of this research are:Firstly,by studying the influence of customer concentration on corporate bank borrowing,the paper further supplements the existing research on the influencing factors of bank borrowing,provides a new research perspective and provides theoretical support for enterprises to obtain bank credit.Secondly,the result of the paper shows that customer concentration is a positive signal in the capital market,which is helpful for the acquisition of corporate bank loans.However,while paying attention to the profitability characteristics of customer concentration,it is necessary to pay attention to customer concentration risk in the high level of environmental uncertainty.Thirdly,the conclusion of the mechanism analysis has important theoretical and practical significance for the management of enterprise customer relationship and the regulation of customer information disclosure.In summary,the paper can bring reference value in practice for enterprise supply chain management and bank credit financing activities,and can bring significance to bank credit decision and the practice of "supply chain finance".