Buyer-supplier Relationships And Capital Structure

At the moment when our country's economic development is in a period of transition,both the legal system and the market mechanism are not perfect.When the enterprise's trust level in this kind of environment(ie,the accumulation of social capital)is relatively low,in order to reduce the degree of information asymmetry and transaction uncertainty,it is unlikely that a firm will choose to engage in any business with whom it has no trading relationship,and tend to form long-term "relationship",a type of invisible contract,for trading,such as relying on a few more familiar suppliers and customers.Buyer-supplier relationships among cooperative enterprises play a significant role in saving transaction costs.Creating continuous relationship renting is a necessary condition for enterprises to enhance their competitiveness.In the meantime,however,long-term buyer-supplier relationships are more likely to create relationship-specific investments that may create a risk of jail-lashing.In the past,based on the perspective of commitment effect,scholars have conducted an in-depth analysis of the negative correlation between buyer-supplier relationships and capital structure.However,this mechanism only analyzes the decision-making motives of the corporate capital structure from the perspective of maintaining the transaction relationship(ie,Firms maintain lower debt ratios in order to stabilize the long-term relationship).It ignores the business risks arising from the company's over-reliance on buyer-supplier relationships.And it may further affect the choice of the capital structure of the enterprise.This paper selects Shanghai and Shenzhen A-share listed companies from 2007 to 2015 as the research object,and from the perspective of risk control,explores the relationship between the buyer-supplier relationships and financial leverage again.The conclusion is consistent with the previous conclusion based on the commitment effect.The paper also finds that there are significant differences between the state-owned enterprises and the private-owned ones in this phenomenon of risk control,and the macro-monetary policies also affect the corporate risk level through the risk-bearing channels of monetary policy,thus affecting the relationship between the buyer-supplier relationships and the company's capital structure adjustment.The conclusions are as follows:(1)The buyer-supplier relationships have a significant impact on the choice of corporate capital structure,and the higher the concentration ofsuppliers / customers,the lower the ratio of assets and liabilities;(2)Because of its unique property rights,state-owned enterprises Effectively easing the motivation for enterprises to reduce their capital structure to realize risk control;(3)During the loose monetary policy period,the motivation of enterprises to reduce their capital structure due to the existence of the buyer-supplier relationships will be significantly weakened;(4)Loose monetary policy is more conducive to non-state-owned enterprises to ease the inhibitory effect of the buyer-supplier relationships on capital structure.Based on the perspective of risk control,this article provides direct empirical evidence for the influence of suppliers and customers on the corporate assets structure among the enterprise stakeholders,and enriches the literature of the buyer-supplier relationships and asset structure.