Research On The Influence Of Supply Chain Concentration On Enterprise Financial Flexibility

Financial flexibility is a crucial link in enterprise strategic decision-making,which reflects the ability of enterprises to effectively deal with crises and seize investment opportunities in response to emergencies.Since the global economic crisis triggered by the U.S.subprime mortgage crisis in 2007,the uncertainty of future economic development has increased,the market competition environment has become increasingly fierce,and the highly uncertain macro environment has highlighted the importance of enterprise financial flexibility.Appropriate financial flexibility helps enterprises adjust their capital structure in time and respond flexibly to changes in the capital market.Under the new situation,financial flexibility plays an increasingly important role in the long-term and stable development of enterprises,and it is also a hot issue studied by domestic and foreign scholars in recent years.At the same time,the upstream and downstream relationship of the supply chain will affect the decision-making of enterprise financial flexibility.Enterprises must optimize supply chain management in combination with their own characteristics and industry laws.They should not only establish a stable strategic partnership with upstream suppliers and downstream customers to form a "supply chain synergy",but also avoid excessive dependence on the upstream and downstream relationship of the supply chain,maintain the flexibility of enterprise financial policies and promote the high-quality development of enterprises.This paper is based on the relevant data of A-share Manufacturing Listed Companies in Shanghai and Shenzhen stock markets and gem from 2009 to 2020.Based on financing theory,stakeholder theory and resource dependence theory to explore the internal relationship between enterprise supply chain concentration and financial flexibility.On this basis,select enterprise scale,capital expenditure,operating cash flow,growth and profitability as control variables and product competition as adjustment variables.The samples of enterprises with different property rights and different regions are grouped,and a multiple regression model is constructed to comprehensively explore the influence of upstream supplier concentration and downstream customer concentration on the financial flexibility of enterprises.The results show that: first,both supplier concentration and customer concentration will positively affect the financial flexibility of enterprises.Maintaining a certain financial flexibility reserve is conducive to reducing the financial risk caused by excessive dependence between upstream and downstream of the supply chain;Second,the degree of product competition will aggravate the impact of customer concentration on enterprise financial flexibility.Third,the customer concentration of non-state-owned enterprises has a more obvious impact on financial flexibility.Fourth,the impact of supplier concentration on financial flexibility in the eastern region is more significant than that in the central and western regions.Finally,from the perspective of enterprises and government,this paper puts forward reasonable suggestions to optimize enterprise financial decision-making and realize the long-term development of enterprise management benefits.