The Impact Of The Performance Of Major Customers On The Cost Of Corporate Bond Financing

Debt financing is one of the main financing methods of enterprises.With the tightening of macro policies,the record of rigid payment of domestic bonds has been gradually broken,which is the norm in the developed bond market.At the same time,refinancing difficulties are the primary problem that hinders the development of the majority of enterprises.Governments around the world are actively seeking measures to reduce the burden on enterprises.However,in the current industrial chain ecological environment,the cooperation between enterprises is close,and the academic community lacks sufficient empirical test on the economic relationship between upstream and downstream enterprises and the performance of downstream customer company operating income on the financing cost of supplier companies.The impact of customer company earnings performance on the spread of supplier bond is meaningful.This paper takes 6276 sets of bond information issued by supplier companies that disclose major customer financial data in the US public market during the period from 2000 to 2014 as a research sample,and uses the combination of theoretical analysis and empirical test to examine the earnings performance of major client companies.Whether it will affect the difference in interest rates when the company's corporate bonds are issued.Among them,the customer's return performance is measured by its total return on assets(ROA)and the ratio of net cash flow from operating activities to total assets(NOCF).The study found that:(1)there is a significant negative correlation between the profit performance of major customers and the corporate bond spread of suppliers;(2)when the concentration of customer industry is higher,the relationship between the two is more stable,and the more proprietary investment of suppliers,The more significant the relationship is(3)when the degree of information asymmetry between the customer or the supplier is relatively high,the impact relationship is relatively weak,because the investor does not have access to the comprehensive financial information of the affiliated company.The spread has little effect.Finally based on the research conclusion,the supply chain risk transfer and the supplier company should how to avoid the customer the influence of the concentration of its own debt financing cost put forward reasonable Suggestions: first,the management risk of the supplier should focus on the downstream customers change,strengthen the management of large accounts receivable and cash flow,to prevent a liquidity crisis;Secondly,excessive customer concentration and proprietary investment should be avoided to improve their bargaining power in business transactions.Finally,enterprises should strengthen their degree of information disclosure and actively cooperate with companies with high financial transparency to enhance their financing advantages in the capital market.In this paper,the main innovation points are:(1)the research from the perspective of supply chain management,based on the business and economic relationship between upstream and downstream enterprises effect to analyze the impact of financing,the credit risk of the enterprise,transformation in the past from their own financial index system analysis of the traditional thinking mode,to improve the whole industry chain on the enterprise credit security and to study how to reduce the enterprise financing cost provides a new way of thinking.(2)this article will study of customer and supplier relationships original center of gravity from the stock market development to the bond market and the significant conclusions,confirmed the upstream and downstream stable trading relationship will lead to the credit risk of extended upward downstream,make the supply chain relationship impact on corporate bond financing and market investor behavior research content more rich.Under the background that the rigid payment of domestic credit bonds is further broken in the future,the conclusion drawn from the empirical analysis of the data of mature us bond market has a strong reference significance for the global control of debt risk,especially for China's debt risk control.