Research On The Influence Of Customer Concentration On Cash Dividend

As an important way for investors to get paid,cash dividends reflect the profitability and management of listed companies,and are closely related to the stable development of capital market.However,many listed companies distribute little cash dividends in Chinese capital market,which seriously violates the legitimate interests of investors.Since 2001,Chinese Commission issued a series of policies to regulate the cash dividend distribution behavior of listed company,and achieved a series of positive effect.But there is still a large gap between Chinese and mature capital market.At the same time,with the increasingly fierce competition in the product market,the stable customer supplier relationship has become an important condition for all industries to gain competitive advantage,especially under the severe background of overcapacity in our country,the competition of customer resources is more intense.In the field of corporate finance,more and more attention is paid to the important role of customers in the company's investment and financing decisions.Taking the A-share manufacturing listed company in 2002-2016 as a sample,we use propensity score matching method and multiple regression method to test the effect of customer concentration on propensity and level of cash dividends payment.In order to explore the influence mechanism of customer concentration on cash dividend,we group the samples according to the degree of information asymmetry,agency conflicts and financing constraints.Further,we adopts event study method to identify the dominant theory of customer concentration affecting cash dividends.The results showed that there was a significant negative correlation between customer concentration and the tendency and levels of cash dividend distribution.The regression results of subgroup show that customer concentration affect the level of cash dividend distribution by three theories: signal transmission,agency conflict and financing constraint.Further research shows that the theory of financing constraints is the dominant theory that the degree of customer concentration affects cash dividends.