Empirical Research On Customer Concentration And Accounting Conservatism Of Listed Companies

The customer is one of the company's key stakeholders,which has a decisive influence on the company in many ways,such as strategic development,production,management and so on.Therefore,the company is increasingly inclined to establish long-term friendly relationships with customers.However,the company's managers have an information asymmetry advantage over other stakeholders such as the company's customers,thus they can use this advantage to reduce the confirmation of expected bad news,which will have a bad impact on the customer's interests.Therefore,customers will require the company to have more higher accounting conservatism,and they can understand the actual operation of the company better,reduce information asymmetry between companies,and thus ensure their own interests.Exploring the impact of customer characteristics on the company is of great significance for promoting the company's development of optimal strategies and benign development.However,most of the existing literatures have researched the impact of customer concentration on the company's performance,business risk,asset structure,cash holding level,auditor selection and audit fees,and the studies about the relationship between customer concentration and accounting conservatism are very few.Secondly,the customer relationship will affect the company's sales transactions.If the customer's bargaining power is stronger,it will decide whether to conduct the transaction,transaction type to a certain extent,and even the duration of the transaction,which will make the company meet the customer's requirements for accounting conservatism to a certain extent,thus affecting the company's accounting practices.In previous studies,researchers generally focused on the impact of creditors(mostly banks)on corporate accounting practices,but did not discuss their requirements for corporate accounting practices from the perspective of customers in creditors.Therefore,this paper intends to start from the relevant theory of customer concentration and the relevant theory of accounting conservatism,taking the listed companies of Shanghai Stock Exchange and Shenzhen Stock Exchange in 2009---2015,drawing on relevant research models,stata software pair The sample was subjected to descriptive statistical analysis and correlation and regression analysis to study the relationship between customer concentration and accounting robustness under different property rights and different industry competition environments.Through empirical analysis,this paper finds that:First,customer concentration and accounting conservatism show a significant positive correlation.Explain that the higher the customer concentration,the stronger the bargaining power of the customer can affect the transaction,so the company improves the accounting stability to meet the needs of customers.Second,compared with state-owned listed companies,the positive correlation between customer concentration and accounting conservatism of non-state-owned companies is more significant.Explain that non-state-owned companies have greater influence on customers.Third,compared with companies with weak competition in the industry,the positive correlation between corporate concentration and accounting conservatism in a strong industry competitive environment is strong,indicating that the more intense in the industry competition,the more the company relies on large customers.More inclined to meet the needs of large customers for accounting robustness.This article will enrich academic research on customer concentration and accounting robustness.Through this research,we will also deepen our understanding that customer relationships will affect the company's accounting practices.The empirical results show that customers are more willing to establish cooperative relationships with companies with strong accounting stability,especially long-term cooperative relationships.Therefore,in order to seek long-term development,the company must start from enhancing its own accounting stability.This will help the company to better attract customers,enable the company to take the initiative in the factor supply and demand market,and reduce the dependence on customers.