Research On The Influence Of Upstream And Downstream Concentration? Financing Constraints On Corporate Cash Holdings

As an important part of corporate financial decision-making,enterprise cash holding management has always been a hot topic for many scholars.From the current research results of cash holdings,scholars start from the perspective of the financial characteristics of financial stakeholders and the company itself,from the perspective of non-financial stakeholders such as upstream and downstream suppliers and customers.Research with horizontal influence is lacking,but upstream and downstream enterprises are important components of the enterprise supply chain,and their impact on many aspects such as business management and strategic management are crucial.This paper starts with the non-financial stakeholders of the enterprise – upstream and downstream enterprises,and studies the relationship between upstream and downstream concentration and corporate cash holding level.At the same time,the financing constraints are introduced to further explore the adjustment effect of financing constraints on the relationship between upstream and downstream concentration and cash holding level of enterprises,so as to clarify the specific mechanism of the influence of upstream and downstream concentration on the cash holding level of enterprises.This paper takes the 2012-2017 Shanghai-Shenzhen Ashare manufacturing listed company as the research object,and establishes a multivariate regression model to empirically test the relationship between upstream and downstream concentration and corporate cash holding level.The study finds that the upstream and downstream concentration are both Significantly positively correlated with corporate cash holdings;and further research indicates that the positive impact of downstream customer concentration on corporate cash holdings is more pronounced in companies facing financing constraints while maintaining other conditions,and whether The existence of financing constraints has no significant impact on the relationship between upstream supplier concentration and corporate cash holdings.Therefore,it is concluded that one of the mechanisms for the influence of downstream customer concentration on the cash holding level of enterprises is through financing constraints,but the concentration of upstream suppliers does not affect cash holdings by affecting the financing constraints of enterprises.The mechanism remains to be further studied.Through the study of the relationship between the upstream and downstream concentration of enterprises and the level of cash holdings of enterprises,this paper enriches the empirical basis of the current theoretical factors affecting cash holdings,and improves the upstream and downstream management and cash management mechanisms of manufacturing enterprises.Practical significance,I hope to provide a certain reference for the long-term development of China's manufacturing enterprise...