Supplier Concentration,Customer Concentration And Financing Constraints

In an effective capital market,corporate value is not affected by the financing method,and companies can freely choose different financing methods to meet the funding needs.However,in the real capital market,due to the existence of agency problems and information asymmetry,external financing costs of enterprises are often higher than their own capital costs.This problem has limited the investment decisions of enterprises and led to financing constraints.Compared with developed countries,there are many defects in the capital markets of developing countries,and the financing constraints faced by enterprises are more severe.The survey results of the World Bank show that the problem of financing constraints in China's capital market is particularly serious,Chinese companies are facing the worst financing constraints in the world.It can be said that financing constraints have become one of the important issues that restrict the healthy and stable development of China's economy.To solve the financing problems,only the development of enterprises can be guaranteed.Scholars at home and abroad have explored the problem of financing constraints from different perspectives,and the results have been abundant.Many scholars also analyzed the ways to ease the financing constraints from the perspective of bankenterprise relations and government-enterprise relations based on China's unique institutional environment and cultural background.However,few scholars are concerned about the relationship between suppliers and customers in the upstream and downstream of the supply chain of the company.In recent years,scholars have discovered that major suppliers and customers not only directly affect the company's procurement and sales practices,but also further affect the company's operating performance and earnings management level,and are transmitted to the capital market.affecting the company's cost of equity capital,stock price collapse risk from a financial point through research on suppliers and customers.Then,since the change of supplier/customer concentration affects the decision of the capital market participants,will it affect the financing constraints of the company? If it can influence the financing constraints,what kind of conduction path and mechanism exist?Based on this,this article takes the 2007-2016 A-share listed company as a research sample,and uses the cross-section modified Jones model,KZ model and investment-cash flow sensitivity model to determine supplier/customer concentration,accounting information quality and financing constraints.The relationship between the three was explored.The study finds that:(1)The degree of suppliers/customers concentration is indeed the influencing factor of financing constraints,and the degree of financing constraints that listed companies face is significantly positively correlated with the degree of concentration of suppliers/customers,that is,the reliance of listed companies on major suppliers and customers is increasing.The company's financing constraints.(2)The quality of accounting information of listed companies is significantly and negatively related to the concentration of suppliers/customers.The reliance on major suppliers and customers enhances the incentive for companies to perform earnings management and reduces the willingness of companies to disclose high-quality accounting information.(3)The quality of accounting information is one of the important paths for supplier/customer concentration to affect corporate financing constraints.The reliance of the company on major suppliers and customers reduces the quality of accounting information,leading more information asymmetry among companies and its investors and creditors.The information asymmetry has affected the investment and credit decisions of investors and creditors,and has caused companies facing more serious financing constraints.