Supplier-Base Concentration and Cost Structure

IF 1.4 Q3 BUSINESS, FINANCE

Journal of Management Accounting Research Pub Date : 2023-07-01 DOI:10.2308/jmar-2022-009

Clara Xiaoling Chen, Lulu Di, Wei Jiang, Wei Li

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引用次数: 0

Abstract

ABSTRACT In the past three years, companies across the globe have witnessed significant supply chain disruptions due to the COVID-19 pandemic, which highlights the importance of managing supply risk. Supply risk has increased in the last three decades due to an increasing prevalence of concentrated supplier bases. We predict that firms with high supplier-base concentration will choose a more elastic cost structure in response to the increased supply risk. Using a unique dataset of 4,530 firm-year observations hand-collected from supplier information disclosed by Chinese-listed firms, we document a positive association between supplier-base concentration and cost elasticity. Furthermore, results from five cross-sectional tests are consistent with supply risk driving the association between supplier-base concentration and cost elasticity. Our study provides important practical implications to managers. To the extent that supplier-base concentration poses a supply risk, our study suggests that managers can respond by making the cost structure more flexible. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: L23; M41.

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供应商集中度与成本结构

在过去的三年里，由于COVID-19大流行，全球各地的公司都经历了严重的供应链中断，这凸显了管理供应风险的重要性。在过去的三十年中，由于集中的供应商基地越来越普遍，供应风险增加了。我们预测，供应商集中度高的企业将选择更具弹性的成本结构来应对增加的供应风险。我们使用一个独特的数据集，从中国上市公司披露的供应商信息中手工收集了4,530个公司年的观察数据，证明了供应商基础集中度与成本弹性之间存在正相关关系。此外，五个横截面测试的结果与供应风险驱动供应商基础集中度与成本弹性之间的关联一致。我们的研究对管理者具有重要的现实意义。在某种程度上，供应商基础集中构成了供应风险，我们的研究表明，管理者可以通过使成本结构更灵活来应对。数据可用性:数据可从文本中引用的公共来源获得。JEL分类:L23;M41。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Management Accounting Research BUSINESS, FINANCE-

CiteScore

2.90

自引率

5.90%

发文量

期刊介绍： The mission of the Journal of Management Accounting Research (JMAR) is to advance the theory and practice of management accounting through publication of high-quality applied and theoretical research, using any well-executed research method. JMAR serves the global community of scholars and practitioners whose work impacts or is informed by the role that accounting information plays in decision-making and performance measurement within organizations. Settings may include profit and not-for profit organizations, service, retail and manufacturing organizations and domestic, foreign, and multinational firms. JMAR furthermore seeks to advance an understanding of management accounting in its broader context, such as issues related to the interface between internal and external reporting or taxation. New theories, topical areas, and research methods, as well as original research with novel implications to improve practice and disseminate the best managerial accounting practices are encouraged.