The Impact Of Supply Chain Concentration On The Financial Risks Of Listed Companies

As an important part of our country’s capital market,listed companies play an important role in the development of the national economy and the transformation and upgrading of industrial structure.Under the trend of economic globalization,companies are facing increasingly fierce competition and the uncertainty of the business environment is increasing day by day.Therefore,more and more listed companies are developing from vertical integration and horizontal integration to supply chain management.However,although a higher level of supply chain concentration can bring greater sales revenue to the company through synergy,the various risk problems caused by the excessive concentration of suppliers and customers have become more serious.Therefore,studying the impact of the concentration level of the supply chain of listed companies on financial risks plays an important role in ensuring the healthy development of listed companies and preventing financial risks.Supply chain concentration mainly includes two parts: upstream supplier concentration and downstream customer concentration.There are currently few studies on the impact of supply chain concentration on financial risks.Most of the existing studies only focus on downstream customer concentration on enterprises.The impact of a certain type of financial risk(such as financing risk,capital recovery risk,default risk,etc.),and the research conclusions are not uniform,so this article also considers the concentration of suppliers and customers,and explores their impact on the overall financial risk.On the one hand,it can enrich the relevant research on the economic consequences of the supply chain and the factors affecting financial risks.On the other hand,it can also provide a reference for China’s listed companies and relevant government departments to improve the supply chain risk prevention and control mechanism,which has important theoretical and practical significance.This article first sorts out related theories,including resource dependence theory,transaction cost theory,stakeholder theory,and information asymmetry theory.Based on this,it analyzes suppliers in terms of asymmetry dependence,transaction costs,commercial credit,and information differences.The impact mechanism of concentration and customer concentration on financial risk;secondly,select China’s Shanghai and Shenzhen A-share listed companies in the past five years from 2015 to 2019 as the sample to examine the current situation of supplier concentration,customer concentration and financial risk Preliminary statistical analysis;finally,a fixed-effect regression model was constructed and the empirical analysis of the influence of supplier concentration and customer concentration on the financial risks of listed companies was carried out.On this basis,the sample companies were grouped according to different standards to further explore different property rights Whether there are differences in the relationship between the nature,bargaining power,and specific investment of listed companies.The research conclusions of this article are mainly as follows: First,the concentration of upstream suppliers and the concentration of downstream customers are significantly positively correlated with the financial risks faced by listed companies,which shows that the overall supply chain concentration is also related to the listed company’s Financial risks are positively correlated.The high degree of concentration makes enterprises have asymmetric dependence and their position in the supply chain is low,which in turn positively affects the financial risks of enterprises in various aspects such as commercial credit,transaction costs and information differences.Second,among non-state-owned listed companies,listed companies with low bargaining power,and listed companies with high specific investment,the concentration of suppliers and customers have a greater impact on corporate financial risks.The financing capacity and partner selection of non-state-owned enterprises are quite different from those of state-owned enterprises.Low-bargaining enterprises are more vulnerable to encroachment than high-bargaining enterprises.The higher switching costs of high-specific investment enterprises make them more likely to be trapped.The financial risks of similar listed companies are more affected by the concentration of the supply chain.Based on the analysis results of the previous article,this article puts forward relevant suggestions from both the enterprise itself and the government agency: from the enterprise itself,it is necessary to strengthen supply chain management,focus on risk management and control,increase bargaining power,and reduce specific investment;from the government agency’s perspective,To standardize the information disclosure mechanism,strengthen transaction supervision,and encourage information sharing.