Supplier/customer Concentration And Voluntary Disclosure

Voluntary information disclosure is supplement of the mandatory disclosure.Investors continue to improve demand for quality of public information requirements with the occurrence of a variety of financial fraud cases.The level of information disclosure is not only the core content of the information disclosure system but also the core content of modern corporate finance theory.The frequency of voluntary information disclosure varies to a great extent.Some have high level earnings forecast disclosure frequency,some with seldom disclosure or none.There are a lot of scholars discussing the difference from the corporation governance and the characteristic of companies,rarely involve information requirements of external stakeholders such as suppliers and customers.Regarding firm's financial information as a commodity,the company as the provider of information and external stakeholders as users of information.It is worthy discussing whether the relationship between supplier and users will affect the enthusiasm of public disclosure of financial information or public disclosure is the only way to meet the information requirements of stakeholders.There are overcapacity among many industries in our country,attaching great importance to the supplier and customer relationship.Research on the effects of supplier and customer characteristics has important significance for the optimal strategies and promoting enterprise development.So this paper constructs research framework including the Customer/supplier information requirements and disclosure pattern of public and internal disclosure information and uses A-shares manufacturing business data of listed companies from 2010 to 2015,empirically discussing how the supplier/customer concentration affects earnings forecasts of state-owned enterprises(SOEs)and non-state-owned enterprises(NSOEs)and how industry competitive degree affects voluntary accounting disclosure.Through the empirical analysis,we find that: First,Supplier/customer concentration is negatively related to the frequency of company's earnings forecast.It shows that major supplier and customer could make use of advantage to gain accounting information through the internal channels.and the firm will reduce public information disclosure in order to promote cost savings.Second,Comparingwith NSOEs,the supplier/customer concentration of SOEs is less negatively related to the frequency of company's earnings forecast.Indicating that NSOEs have been affected more by major supplier and customer.Third,comparing with the one in less competitive environment,company in vie industry is even more negatively related to the frequency of company's earnings forecast.It shows that firms with more competitors are more connected with their customer.According to the findings,we suggest strengthening supply chain management,integrating the important suppliers and customers to the company in the process,and reducing the total cost of supply chain.We also need to promote standard management,perfect the management mechanism and improve reasonable adjustment of resources or the level of management earnings forecast disclosure to create fair information disclosure environment for all stakeholders.