The Influence Of Supplier Concentration And Customer Concentration On Commercial Credit Financing

In the process of enterprise production and operation,factors such as bank credit constraints,"difficult financing" and "expensive financing" will hinder the further development of enterprises.As an important financing method,commercial credit financing can alleviate the financing constraints caused by bank credit discrimination and equity financing difficulties to enterprises to a certain extent,help enterprises alleviate the shortage of funds,accelerate the flow and circulation of funds,improve the utilization rate of enterprises’ funds,and is of great significance to enterprises to carry out short-term financing.Making full use of commercial credit financing is an urgent need to alleviate credit discrimination in China’s market,improve resource utilization efficiency,production and operation efficiency,and promote the high-quality development of China’s economy.Enterprises purchase raw materials and production technology from suppliers,and then obtain commercial credit financing from suppliers,customers purchase finished products from enterprises,and then encroach on enterprise commercial credit financing,suppliers and customers affect the production and business activities of enterprises to a certain extent.At present,in order to reduce transaction costs,most enterprises concentrate raw material procurement and commodity sales on large suppliers and large customers,and the concentration of suppliers and customers of enterprises increases,which is conducive to suppliers,enterprises and customers to form information sharing,benefit sharing,risk sharing production mode,reflected in the cooperative relationship between enterprises.When the concentration of suppliers and customers is large,the bargaining power and production capacity of enterprises are reduced,which is reflected in the competitive relationship between suppliers,enterprises and customers.This article is based on China’s A-share listed companies 2010-2021 The annual data is a research sample,which studies the acquisition of commercial credit financing from the supply side and the demand side,which includes both the binary relationship between suppliers or customers and enterprises,and the ternary relationship formed by the three.This paper puts forward research hypotheses by reading relevant literature and theories;By constructing a multiple regression model for panel data,the impact of supplier and customer concentration on commercial credit financing under binary and ternary conditions is verified.Use the least squares method of instrumental variables to verify whether the main variables are exogenous;The robustness of the model was verified by using lagging explanatory variables,substituting explanatory variables,and replacing explanatory variables.The heterogeneity analysis of property rights and the heterogeneity analysis of company scale were used to test the heterogeneity.The main conclusions of this article are as follows:The greater the concentration of suppliers,the less commercial credit financing the enterprise obtains from the supplier,the greater the concentration of customers,and the more commercial credit financing the customer obtains from the enterprise;Compared with the concentration of suppliers,the positive relationship between customer concentration and commercial credit financing obtained by enterprises is more significant,and the negative relationship between customer concentration and commercial credit financing obtained by enterprises from suppliers is more significant than that of small customer concentration.When the concentration of enterprise suppliers and customers is large at the same time,the net commercial credit financing of enterprises increases.Based on the research background and conclusions,this paper proposes that enterprises should pay attention to obtaining commercial credit financing,strengthen cooperative relations with upstream and downstream enterprises,and continue to deepen banking reform and expand financing methods for small and medium-sized enterprises to ease corporate financing constraints.