Research On Institutional Environment,Customer Concentration And Capital Structure

As enterprise non-financial stakeholders,customer play an important role in it.Due to the business environment is not perfect now,enterprise will cooperate with big customer to reduce transaction cost and to maintain their market competitive position.They connect by relationship specific investment to achieve revenue sharing,risk sharing.Stable customer relationship bring the lower transaction cost and benefits at the same time also bring the disadvantages.On the one hand,enterprises churn large customer will face the risk of capital chain rupture.On the other hand,customer churn will corporate mismanagement of signals to the market so that the enterprise's financing constraints.Due to the big customer focus on corporate balance sheets,companies tend to choose conservative capital structure decision when they rely on a few Big customers.Companies take the initiative to reduce the asset-liability ratio as a strategic commitment to customers in order to maintain the relationship between each other.There are many influence factors of enterprise capital structure.The institutional environment also play a big role as the external factors.The development of domestic institutional environment is unbalanced.Perfect system environment can fair financing resource configuration,increase the degree of investor protection,reduce the cost of equity financing,make the financing channels more widely,so that enterprises reduce the reliance on single financing channels.This article will do the research from three aspects:government intervention,law environment,finance environment.Since the customer concentration and the institutional environment will have an effect to the enterprise capital structure decision,we will study their effect on capital structure plays a role of complementary or alternative.Hereby,this paper use data from 2009 to 2014 manufacturing listed companies as samples,reference to related model and get the following conclusion:First,customer concentration has negative correlation with asset-liability ratio,the higher the customer concentration,the lower the asset-liability ratio.Second,institutional environment also has negative correlation with asset-liability ratio,the better the institutional environment,the lower the asset-liability ratio.Third,institutional environment and customer concentration have the alternative effect in decreasing the ratio of asset-liability.