Research On The Impact Of Supply Chain Concentration On Debt Financing Cost Of SMEs

With the advancement of economic integration and specialization of division of labor,the production process of modern enterprises is more and more detailed,and the production of products needs close cooperation of multiple enterprises,which gives birth to the concept of supply chain.Under the background of market refined division of labor,some enterprises only trade with a few upstream and downstream enterprises,which makes the number of trade enterprises less,the supply and marketing channels of trade more centralized,and the composition of supply chain simpler.The centralized purchase from a few upstream suppliers will result in a higher supplier concentration,while the centralized sales to a few downstream customers will result in a higher customer concentration.Supplier concentration and supplier concentration are collectively referred to as supply chain concentration.As an important part of the external environment of an enterprise,the supply chain concentration,together with the internal information such as the operation status of the enterprise,will affect the debt financing cost of the enterprise.When creditors such as banks evaluate the credit rating of enterprises,they will examine the financial status,operation status,default risk and other indicators of enterprises.The concentration of supply chain is closely related to the operation of enterprises,and it also becomes an important reference for financial institutions to measure the scale and cost of lending.For those SMEs(abbreviation of small and medium-sized enterprises)with imperfect information disclosure system,the indicators of external supply chain status of enterprises for creditors will be more instructive.SMEs,as a weak part of the supply chain,are faced with the dilemma of "difficult and expensive financing" due to their credit and collateral conditions.Depending on the supply chain finance,SMEs can obtain larger credit line and lower credit cost by relying on the large upstream and downstream enterprises.Different from the large upstream and downstream enterprises,this thesis is concerned with the behavior of intermediate enterprises carrying out trade with a small number of upstream and downstream enterprises too much,and mainly focuses on the " expensive financing" aspect to investigate SMEs' debt financing cost.This thesis uses the panel data of A-share listed companies to explore the impact of supply chain concentration on the debt financing cost of SMEs,and further explore the intermediary effect and regulatory effect of the impact.The following conclusions are drawn through empirical analysis:(1)Both the increase of upstream and downstream concentration of supply chain will enhance the debt financing cost of intermediate enterprises.Compared with the increase of upstream supplier concentration,the increase of downstream customer concentration has a greater positive effect on the debt financing cost of enterprises.(2)The increase of supply chain concentration has a greater impact on the SME's debt financing cost than large enterprises'.(3)The impact of supply chain concentration on SME's debt financing cost is realized by taking operational risk as part of the intermediary effect,forming a guiding path of "supply chain concentration rising-operational risk rising-debt financing cost rising".(4)The improvement of the competitive position of enterprises will weaken the impact of supply chain concentration on debt financing cost,this weakening effect can be reflected in both SMEs and large enterprises,but this regulatory effect on SMEs is more obvious.Based on the empirical analysis,recommendations are made as follows:enterprises should actively expand the supply and marketing channels,and enhance their competitive position;banks should combine policies to reduce the standard for enterprises with high competitive position;the state should guide formal finance to become the main force of financing for small and medium-sized enterprises.