Customer concentration, institutions, and corporate bond contracts

Liu, Ji; Xiao, Zuoping; Xie, Hong

doi:10.1002/ijfe.1731

Cited by 18 publications

(15 citation statements)

References 63 publications

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“…Following the literature (e.g., Peng et al, 2019;Liu et al, 2020), this study uses the firm's sales to the top 5 customers divided by total sales to measure customer concentration. Following Baron and Kenny (1986), this study constructs the model as follows:…”

Section: Regression Model For Customer Concentration's Moderating Effectmentioning

confidence: 99%

The Substitution Financing Effect of Suppliers’ Trade Credit on Customers’ Trade Credit in China

Guo

Song

2021

Journal of Business Economics and Management

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This study investigates the substitution financing effect of suppliers’ trade credit on customers’ trade-credit using Chinese listed firms from 2009 to 2018. Results verify the substitution financing effect of suppliers’ trade credit on customers’ trade credit, indicating that firms with higher suppliers’ trade credit have lower customers’ trade credit. Moreover, suppliers’ trade-credit substitutes customers’ trade credit by alleviating financing constraints. Customer concentration weakens the substitution financing relation. Finally, the substitution financing effect of customers’ trade credit on bank credit is more pronounced than that of suppliers’ trade credit. As exogenous policy shock, the capital market liberalization has no significant impact on the substitution financing relation between heterogeneous trade credits. This study reveals that trade credit is heterogeneous rather than homogeneous. The substitution financing effect also exists in trade credit inside, which expands the existing literature’s understanding of trade credit and the substitution financing theory’s connotation.

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Section: Regression Model For Customer Concentration's Moderating Effectmentioning

confidence: 99%

The Substitution Financing Effect of Suppliers’ Trade Credit on Customers’ Trade Credit in China

Guo

Song

2021

Journal of Business Economics and Management

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“…PSM has been described as the most developed and popular approach for processing data to improve causal inference in observational studies (Pearl, 2010). The main advantage of PSM in our context is that it does not rely on classical regression assumptions such as linear functional form or serially non-correlated errors, and can satisfactorily deal with the endogeneity problem (Cushman & De Vita, 2017;Liu, Xiao, & Xie, 2019). The latter virtue could be particularly advantageous in application to the present study given that legal origin is a variable that is constant at the country level and there may be many other country-level factors correlated to it, so it is impossible to isolate the effect of legal origin from the effect of other country-wide institutions.…”

Section: Highlightsmentioning

confidence: 99%

Legal origin and financial development: A propensity score matching analysis

Vita

Luo

2020

Int. J Fin Econ

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We revisit the impact of legal origin on financial development using propensity score matching and a new financial development index on a sample of 178 countries over 1980-2016. German civil law countries are found to have the strongest positive impact on financial development. English common law countries follow. French and Scandinavian civil law countries have a negative impact on financial development while Socialist legal origin records no significant effect. When decomposing the measure of financial development into financial markets and financial institutions' development, we find that German civil law promotes both while English common law promotes only financial institutions development.

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“…Many domestic and foreign scholars have done research with customer concentration as the starting point. The vast majority of literature found that the higher the customer concentration, the higher the business risks facing the company [28,[41][42][43]. The over-reliance on large customers means such companies' financial strategies tend to be conservative, with less innovation and R&D. However, some studies are based on specific environmental systems, with large customers considered to be beneficial to promote supply chain integration and reduce corporate risk [26], and enabling them to invest more resources in their development process.…”

Section: The Influence Mechanism Of Government Clients On Innovation mentioning

confidence: 99%

Government Background Customers and Private Enterprise Innovation from the Perspective of Supply Chain Risk Transmission

et al. 2020

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Private enterprises are major contributors to China's market economy. In order to ensure the sustainability of economic development, China pays more attention to the role of science and technology in promoting the sustainability of the private economy. Based on a sample of all A-share listed companies in the Chinese capital market, we distinguished between government and non-government purchase order data, and examined the impact of large government background customers on private enterprise R&D innovation from the perspective of supply chain risk transmission. Due to the implementation of China's new accounting standards and the delay in the public update of government procurement data, we selected samples from 2007-2015. The research results show that the government background customers can significantly increase the R&D investment of private enterprises, and this relationship is more significant in the sample of mid-level government background customers and private enterprises in poor areas; further analysis found that government background purchase orders can promote innovation investment by mitigating the risks facing a company. From a practical point of view, the research findings of this paper are helpful for understanding the impact of customer structure on the innovation activities of enterprises in a market economy environment.

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Customer concentration, institutions, and corporate bond contracts

Cited by 18 publications

References 63 publications

The Substitution Financing Effect of Suppliers’ Trade Credit on Customers’ Trade Credit in China

The Substitution Financing Effect of Suppliers’ Trade Credit on Customers’ Trade Credit in China

Legal origin and financial development: A propensity score matching analysis

Government Background Customers and Private Enterprise Innovation from the Perspective of Supply Chain Risk Transmission

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