The Impact Of Customer Concentration On Corporate Financial Performance

Customers are the source of profit for companies,the object of products produced by companies,and important external stakeholders of companies.Customer concentration can bring a series of elements affecting the financial performance of companies,such as debt structure,cash holding,auditing risks.This is particularly true for the manufacturing industry in which the buyer-seller relationship is so distinctly reflected.As an important financial indicator of listed companies,customer concentration directly influences the profitability,operation capacity,debt paying ability,and growth capacity and determines the development potential and value creation ability of listed companies.Scientifically and effectively studying customer concentration can deeply disclose its path mechanism influencing corporate financial performance,enhance the financial performance level of companies,and are great theoretical value and practical significance for enhancing the level of corporate financial performance.Meanwhile,the internal structure of different industries is complicated.Different industries also have different characteristics.We should delve into the research questions inside the manufacturing industry to precisely enhance the level of financial performance for companies.Companies adopt different marketing means to bring changes to traditional customer concentration.Under the time background of “Internet+”,studying the adjustment of micro marketing on customer concentration and corporate financial performance is of great significance.There are no consistent conclusions on whether customer concentration exerts a good or bad impact on corporate financial performance.There is also no in-depth study of the internal relationship between different types of companies.No study focuses on the adjustment role of micro marketing.On the basis of sorting out and summarizing domestic and overseas studies,the thesis offers a prescriptive analysis and conducts an empirical research on the impact of customer concentration on corporate financial performance.The thesis uses 956 A-share and B-share listed manufacturers in Shanghai and Shenzhen Stock Market from 2011 to 2017 as the sample,adopts the method of clustering analysis,and conducts a classification analysis of the manufacturing industry.Empirical research results show that customer concentration is negatively correlated with corporate financial crisis.Such a relationship is even more significant in labor-intensive and capital-intensive companies.In technology-intensive companies,the correlation is not significant.Micro marketing can effectively reduce the negative impact of customer concentration on corporate financial performance and improve the financial performance of the company.