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Does the risk of major customer need to be balanced? The role of customer concentration in corporate governance
In the operation and management of the company, major customers may affect a supplier firm’s level of governance. The goal of our study is investigating whether a major customer acts as an important role in corporate governance in emerging markets and exposing the mechanism that how major customers...
Autores principales: | , , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Public Library of Science
2021
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8577764/ https://www.ncbi.nlm.nih.gov/pubmed/34752496 http://dx.doi.org/10.1371/journal.pone.0259689 |
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author | Gao, Di Ma, Jiangming Wang, Yiru |
author_facet | Gao, Di Ma, Jiangming Wang, Yiru |
author_sort | Gao, Di |
collection | PubMed |
description | In the operation and management of the company, major customers may affect a supplier firm’s level of governance. The goal of our study is investigating whether a major customer acts as an important role in corporate governance in emerging markets and exposing the mechanism that how major customers affect corporate decision-making. There is a growing body of literature involving studies about the effect of customer concentration on firm performance of western countries. Few studies have recognized to what degree does customer concentration satisfy the sustainable development of supplier firm. Using a sample of Chinese listed firms, we found a nonlinear relationship between customer concentration and risk-taking, corporate policies and firm performance. Evidence shows that the effect of customer concentration in China resembles an inverted U-shaped curve and major customers are crucial in financial and investment policies. Our results help to provide a broader perspective on the role of major customers, giving a deep explanation about the role of customer concentration in corporate governance. |
format | Online Article Text |
id | pubmed-8577764 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2021 |
publisher | Public Library of Science |
record_format | MEDLINE/PubMed |
spelling | pubmed-85777642021-11-10 Does the risk of major customer need to be balanced? The role of customer concentration in corporate governance Gao, Di Ma, Jiangming Wang, Yiru PLoS One Research Article In the operation and management of the company, major customers may affect a supplier firm’s level of governance. The goal of our study is investigating whether a major customer acts as an important role in corporate governance in emerging markets and exposing the mechanism that how major customers affect corporate decision-making. There is a growing body of literature involving studies about the effect of customer concentration on firm performance of western countries. Few studies have recognized to what degree does customer concentration satisfy the sustainable development of supplier firm. Using a sample of Chinese listed firms, we found a nonlinear relationship between customer concentration and risk-taking, corporate policies and firm performance. Evidence shows that the effect of customer concentration in China resembles an inverted U-shaped curve and major customers are crucial in financial and investment policies. Our results help to provide a broader perspective on the role of major customers, giving a deep explanation about the role of customer concentration in corporate governance. Public Library of Science 2021-11-09 /pmc/articles/PMC8577764/ /pubmed/34752496 http://dx.doi.org/10.1371/journal.pone.0259689 Text en © 2021 Gao et al https://creativecommons.org/licenses/by/4.0/This is an open access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/) , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. |
spellingShingle | Research Article Gao, Di Ma, Jiangming Wang, Yiru Does the risk of major customer need to be balanced? The role of customer concentration in corporate governance |
title | Does the risk of major customer need to be balanced? The role of customer concentration in corporate governance |
title_full | Does the risk of major customer need to be balanced? The role of customer concentration in corporate governance |
title_fullStr | Does the risk of major customer need to be balanced? The role of customer concentration in corporate governance |
title_full_unstemmed | Does the risk of major customer need to be balanced? The role of customer concentration in corporate governance |
title_short | Does the risk of major customer need to be balanced? The role of customer concentration in corporate governance |
title_sort | does the risk of major customer need to be balanced? the role of customer concentration in corporate governance |
topic | Research Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8577764/ https://www.ncbi.nlm.nih.gov/pubmed/34752496 http://dx.doi.org/10.1371/journal.pone.0259689 |
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