Supplier Concentration, Ownership Type and Trade Credit Financing: Based on the Empirical Evidence of Manufacturing Industry Listed Companies in China

Authors

Yaqin Dou, Nanjing Institute of Technology, Nanjing, ChinaFollow
Qiming Zheng, Nanjing Polytechnic Institute, Nanjing, ChinaFollow
Xinfeng Dou, Nanjing Institute of Technology, Nanjing, ChinaFollow
Sijia Chen, Nanjing Institute of Technology, Nanjing, ChinaFollow

Corresponding Author

Yaqin Dou, Nanjing Institute of Technology, Nanjing, China, douyq@njit.edu.cn

Document Type

Article

Abstract

Trade credit belongs to the scope of supply chain internal financing, which reflects the principal relationship between enterprises and suppliers. Based on the empirical data from a main board manufacturing industry companies of 2008-2018, we examine the influence of supplier concentration on trade credit financing in enterprises with different property rights in this paper. We find that the higher the concentration of suppliers, the less trade credit financing enterprises get from suppliers, indicating that the worry about “fleecing” and similar opportunistic behaviors reducing suppliers’ willingness to provide trade credit. We also find that the negative impact of supplier concentration on trade credit financing of non-state-owned enterprises is stronger than that of state-owned enterprises.

Recommended Citation

Dou, Yaqin; Zheng, Qiming; Dou, Xinfeng; and Chen, Sijia, "Supplier Concentration, Ownership Type and Trade Credit Financing: Based on the Empirical Evidence of Manufacturing Industry Listed Companies in China" (2019). ICEB 2019 Proceedings (Newcastle Upon Tyne, UK). 35.
https://aisel.aisnet.org/iceb2019/35