Customer Concentration,Nature Of Property Right And Investment Efficiency

With the change of market environment,single enterprise is unable to support itself,and supply chain management cooperation rises.The upstream and downstream cooperation of supply chain weaves all enterprises into a large network of relationships and becomes a community of interests.On the one hand,the stable cooperation between the two sides of the transaction brings a series of income effects to the enterprise,such as reducing cost,increasing revenue,improving management efficiency,and increasing brand status.On the other hand,it also brings a series of risk effects to the enterprise,such as opportunism threat,reducing information asymmetry,increasing financing cost,and has a subtle adverse impact on the company’s investment decision-making.For the company,whether the company’s investment is reasonable or not is very important for the steady growth of China’s economy.Inefficient investment will affect the good growth of enterprises and domestic economy.Based on the data of "the proportion of the top five customers’ business revenue to the annual business revenue" in the annual report of listed companies,this paper discusses the impact of customer concentration on investment efficiency from the perspective of the nature of property rights,with a view to enriching the research on the impact factors of investment efficiency from a new perspective,and providing enlightenment for the supply chain management and financial decision-making of private enterprises.Based on the theories of information asymmetry and supply chain enterprises,this paper mainly studies the relationship between customer concentration and investment efficiency,the impact of the nature of property rights and product market competition on the relationship.The first chapter,this paper analyzes the current research background and the theoretical and practical significance of this topic;In order to grasp the ideas and methods of this paper more clearly,it elaborates the research ideas of this paper in four steps,including putting forward hypothesis,proving empirical test,drawing conclusion and putting forward corresponding suggestions.In the second chapter,this paper systematically summarizes the relevant literature,which is divided into three parts,including customer concentration,investment efficiency and product market competition.After combing the literature,in the third chapter,the definition of customer concentration,investment efficiency,property right nature and product market competition is introduced,and then the theoretical basis is summarized.The fourth chapter elaborates the mechanism of the effect of customer concentration on investment efficiency and how the nature of private property rights and high-intensity product market competition affect the relationship between them;Based on the analysis of the mechanism of the above relationship,this paper puts forward three research hypotheses,namely,the customer concentration reduces the investment efficiency of enterprises,the private property rights nature strengthens the relationship between the two,and the product market competition suppresses the relationship between the two.The fifth part is the empirical test of customer concentration and investment efficiency by establishing research model.This paper analyzes the relationship between customer concentration and investment efficiency based on the customer characteristic data of A-share Manufacturing Listed Companies in Shanghai and Shenzhen from 2009 to 2017.And the paper uses Richardson(2006)model regression to get the degree of inefficient investment,which is the explanatory variable of this paper.This part analyzes the impact of customer concentration on the investment efficiency,and the significant difference about relationship between customer concentration and investment efficiency between state-owned enterprises and private enterprises,further studies how the product market competition affects the relationship between the two in private enterprises.In addition,in order to make the empirical results more stable and credible,this paper adopts the method of changing the relevant variables,the method of tendency matching score and two-stage regression to test,so as to ensure that the empirical regression results are true and correct.In the last chapter,according to the conclusion of this study,this paper puts forward the corresponding countermeasures and suggestions,mainly from the perspective of the supplier enterprise itself,the regulatory authorities,the government and the relevant external investors.Because there are many limitations in this study,at the end of this paper,the limitations are sorted out and summarized,and on this basis,some prospects are put forward.Through empirical test,we find that:(1)The higher the degree of customer concentration is,the higher the degree of inefficient investment of manufacturing listed companies is,and the customer concentration has an asymmetric effect on the inefficient investment of enterprises,which significantly aggravates the over investment of enterprises,but does not lead to the under investment of enterprises;previous studies have found that the relationship transaction will lead to low information quality due to long-term cooperation and trust,private information exchange mechanism and so on,which will lead to inefficient investment.At the same time,in order to maintain the long-term cooperation between the two sides,enterprises will take the initiative or be forced to carry out joint investment,special relationship asset investment and special research and development and whitewash the report,which will affect the investment efficiency of enterprises.(2)Compared with state-owned enterprises,in private enterprises with unstable customer relationship and relatively difficult financing,the positive correlation between customer concentration and inefficient investment is more obvious.(3)After further testing the sample of private enterprises,it is found that the impact of fierce industry competition on customer concentration and investment efficiency is not significant;when an enterprise is faced with higher product market competition,it is usually accompanied by higher risks.The investment decision-making of the enterprise will be more cautious,and it is difficult for customers to lead to inefficient investment of the enterprise.When the product market competition is lower,the investment decision-making of the enterprise appears to be less cautious,which leads to significant impact on the investment efficiency of the customers.