Competitive Position Of Enterprise,Supply Chain Concentration And Cost Of Equity Capital

At present,China's economic development tends to be stable,but there are still concerns about insufficient domestic demand and external shocks.In order to promote the development of China's economy,the state has proposed to deepen the structural reform of the supply side and the requirements of “capacity reduction,de-stocking,deleveraging,cost reduction,improving underdeveloped areas”.Cost reduction has an important role in both macro and micro perspectives.The cost of equity capital is an important part of the cost of the enterprise,which affects the operation and further development of the enterprise.Cost reduction is not only the requirement of national policies,but also the key to the development of all walks of life.Enterprises should recognize the importance of reducing costs while responding to national policies,and reduce enterprise costs efficiently according to their own characteristics.How to reduce the cost of equity capital,improve the efficiency of financing,and promote the healthy and orderly development of enterprises is especially important for modern enterprises.This paper takes the data of Shanghai and Shenzhen A-share listed companies from 2004 to 2014 as an example to conduct an empirical study to investigate the impact of supply chain concentration on the cost of equity capital of listed companies,and conduct related research in light of the company's own characteristics.Through research,it is found that:(1)There is a positive correlation between the concentration of supply chain and the cost of equity capital of listed companies.In other words,the higher the concentration of supply chain,the higher the cost of equity capital of listed companies,and the higher concentration of supply chain will bring risk effects to listed companies.(2)The level of competitive position of enterprises will affect the relationship between supply chain concentration and the cost of equity capital of listed companies.Research shows that the higher the competitive position of enterprises,the weaker correlation between supply chain concentration and the cost of equity capital of listed companies.A high competitive position can alleviate the negative impact of supply chain concentration on the cost of equity capital of listed companies.(3)Considering the relationship between supplier concentration,customer concentration and listed company's equity capital cost separately,it is found that there is a positive correlation between supplier concentration,customer concentration and equity capital cost.It is consistent with the impact of supply chain concentration and presents a risk effect.(4)Through further mediation effect test,it is found that business risk is one of the intermediary paths of supply chain concentration affecting the cost of equity capital of listed companies,and the concentration of supply chain is more concentrated.High time will lead to an increase in the operational risks faced by listed companies,which in turn will lead to an increase in the cost of their equity capital.(5)an in-depth analysis found that the enterprise The competitive position affects the relationship between supply chain concentration and the cost of equity capital by mitigating the risk of business risk.That is,enterprises with higher competitive status have reduced their ability to concentrate on supply chains because of their strong negotiating ability and risk resilience.The higher the operational risk caused by the higher degree,the final adjustment of the positive correlation between the concentration of supply chain and the cost of equity capital of listed companies,and the weakening of the relationship between the two.This paper finds out the factors affecting the cost of equity capital of listed companies through research,and makes up for the lack of research on supply chain concentration and equity capital cost,enriching relevant theories.At the same time,it provides ideas for enterprises to develop a reasonable supply chain relationship management strategy and effectively reduce their cost of equity capital.Combining the level of competitive position of enterprises,the relationship between supply chain and cost of equity capital is further analyzed,which is more specific and more targeted,and provides reference for enterprises to conduct supply chain management from their own characteristics.The conclusion of this study is not only important for enterprises,but also plays an important role for relevant supervisory departments and investors.For regulators and related investors,the conclusion of this study is related to the relevant regulatory agencies and related regulations.Investment decisions provide theoretical support.