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...

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Autores principales:	Di Gao, Jiangming Ma, Yiru Wang
Formato:	article
Lenguaje:	EN
Publicado:	Public Library of Science (PLoS) 2021
Materias:	Medicine R Science Q
Acceso en línea:	https://doaj.org/article/f0855cf01043426387b4462c7304564e
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spelling	oai:doaj.org-article:f0855cf01043426387b4462c7304564e2021-11-18T06:34:23ZDoes the risk of major customer need to be balanced? The role of customer concentration in corporate governance1932-6203https://doaj.org/article/f0855cf01043426387b4462c7304564e2021-01-01T00:00:00Zhttps://www.ncbi.nlm.nih.gov/pmc/articles/PMC8577764/?tool=EBIhttps://doaj.org/toc/1932-6203In 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.Di GaoJiangming MaYiru WangPublic Library of Science (PLoS)articleMedicineRScienceQENPLoS ONE, Vol 16, Iss 11 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	Medicine R Science Q
spellingShingle	Medicine R Science Q Di Gao Jiangming Ma Yiru Wang Does the risk of major customer need to be balanced? The role of customer concentration in corporate governance
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	article
author	Di Gao Jiangming Ma Yiru Wang
author_facet	Di Gao Jiangming Ma Yiru Wang
author_sort	Di Gao
title	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_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_sort	does the risk of major customer need to be balanced? the role of customer concentration in corporate governance
publisher	Public Library of Science (PLoS)
publishDate	2021
url	https://doaj.org/article/f0855cf01043426387b4462c7304564e
work_keys_str_mv	AT digao doestheriskofmajorcustomerneedtobebalancedtheroleofcustomerconcentrationincorporategovernance AT jiangmingma doestheriskofmajorcustomerneedtobebalancedtheroleofcustomerconcentrationincorporategovernance AT yiruwang doestheriskofmajorcustomerneedtobebalancedtheroleofcustomerconcentrationincorporategovernance
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Does the risk of major customer need to be balanced? The role of customer concentration in corporate governance

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