Influence of Customer Concentration on Enterprise Financial Risk–the Moderating Effect of Internal Control Quality
Authors: 
Houyu Fu, Hua Li, Qiubai SunAuthors Info & Claims
Pages 467 - 472
Abstract
With the rise of supply chain cooperation, customers, as an important part of the supply chain, are receiving more and more attention from companies. Meanwhile customer concentration has become the focus of attention. Customer concentration not only affects the interests of enterprises, but also leads to risks. This paper empirically investigates the impact of customer concentration on corporate financial risk and the moderating effect of internal control quality on the relationship between customer concentration and corporate financial risk by using an empirical analysis with a research sample of A-share listed companies in Shanghai and Shenzhen from 2011 to 2020. The results of the study show that the higher the customer concentration, the higher the financial risk of the company, and that the quality of internal control helps to mitigate the positive impact of customer concentration on the financial risk of the company. Finally, based on the analysis results, we discuss and make policy recommendations for enterprises to avoid and reduce risks and to realize their own sustainable development. This study deepens and enriches the research on the economic consequences of supply chain concentration, and also provides a theoretical basis for enterprises to strengthen internal control and reduce corporate financial risk, and provides new ideas for enterprises to control financial risk.
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Index Terms
- Influence of Customer Concentration on Enterprise Financial Risk–the Moderating Effect of Internal Control Quality
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Published In
July 2022
691 pages
ISBN:9781450396394
DOI:10.1145/3556089
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Association for Computing Machinery
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Publication History
Published: 30 November 2022
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- Research-article
- Research
- Refereed limited
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- the Natural Science Foundation of China
Conference
ICEME 2022
ICEME 2022: 2022 13th International Conference on E-business, Management and Economics
July 16 - 18, 2022
Beijing, China
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