The Mechanism Of Customer Concentration Affecting Cost Stickiness

In recent years,the growth rate of China’s economic development has gradually slowed down.This new normal has become an indisputable fact,and the main reason for its structural slowdown is mainly due to changes in efficiency in factor supply and resource allocation.On the one hand,changes in the cost structure require companies to adjust their profit structure;on the other hand,the overall increase in factor costs has compressed the company’s profit space,and the above two points have comprehensively slowed down the growth rate of the company.Therefore,it is of great significance to carry out academic research on the issue of cost habits for enterprises in the current economic context.As one of the most representative research contents in the field of cost habits,cost stickiness has always been concerned and researched by domestic and foreign scholars.If the management of enterprises can understand the principle of cost stickiness,on the basis of this,they can effectively distinguish cost stickiness The motivation and related mechanism of how it works for the enterprise will have a more complete plan in terms of enterprise cost management,and it will greatly help to optimize the allocation of resources,enhance the value of the enterprise,and enhance the value of external stakeholders.Exploring cost management and new ways to reduce costs can indirectly effectively improve the competitiveness of China’s manufacturing companies,and scholars’ research on the cost stickiness of enterprises can also find new ideas for China’s manufacturing industry to "cut capacity and reduce costs."At present,most of the researches on the causes of cost stickiness start from the perspectives of adjusting costs,managerial expectations,agency issues,etc.,and mainly study the impact of internal control and external macroeconomic market impact of the company,but in the current production theory and operation management theory also With the gradual rise and innovation,under the background of the supply chain management theory focusing on upstream and downstream enterprises focusing on upstream and downstream enterprises in the academic world,customers are an important part of the supply chain,but there is little research on their costs to enterprises.The effect of stickiness.At present,studies have shown that the greater the proportion of customers in corporate sales,the greater the financial impact and business impact of the enterprise,and this impact will also spread to the cost management of the enterprise.Some scholars believe that the higher the customer concentration,the stronger the bargaining power,and the more specific investment,the higher the cost stickiness of the enterprise.However,some scholars believe that the increase in customer concentration will close the transaction between the enterprise and the customer.The better the understanding of external information,the lower the manager’s optimistic expectations,and the lower the adjustment cost.Therefore,there is no unified conclusion on the specific relationship between the two.This paper is based on the impact of customer concentration on the external financing cost of the company,combined with the negative correlation of financing constraint cost stickiness.Mainly discuss the impact of customer concentration on cost stickiness,and study whether financing constraints have an intermediary effect between the two.This article uses the empirical data of China’s A-share manufacturing listed companies from 2007 to 2018 to discuss the possible relationship between customer concentration,financing constraints and corporate cost stickiness.Weakening,and this relationship is partly achieved by financing constraints as intermediaries,that is,the higher the customer concentration,the higher the corporate financing constraints,the corresponding reduction in corporate cost stickiness.After further subdividing financing constraints into commercial credit,bank borrowing and equity financing costs,it was found that increased customer concentration will reduce corporate commercial credit and increase equity financing costs.The impact of the degree on the cost of debt financing is uncertain.Based on the above research,it is found that commercial credit,bank borrowing,and equity financing costs all have significant partial mediation effects between customer concentration and cost stickiness.Finally,this article proposes that the management should have sufficient understanding of the impact of customer concentration.In the daily transaction process with customers,it is necessary to collect information from important customers in various aspects,improve the supervision of customers,and reduce the failure of customers to be timely.The risk of repayment,thereby reducing the business credit risk of the enterprise;at the same time,taking advantage of the stability of important customer transactions as much as possible,reducing the external financing constraints of the enterprise,choosing bank loans as much as possible,and ensuring the stability of financing.In addition,in terms of R & D,when investing exclusively for important customers,improving the specificity of assets should also strengthen the market conversion and liquidity capabilities of assets to ensure timely adjustment of cost investments when transactions occur unexpectedly.