Suppliers' Product Market Competition, Customer Concentration, and Cost Structure

IF 1.4 Q3 BUSINESS, FINANCE

Journal of Management Accounting Research Pub Date : 2020-08-03 DOI:10.2308/jmar-17-070

Hsihui Chang, C. Hall, Michael T. Paz

引用次数: 8

Abstract

We examine how suppliers' product market competition influences the relation between customer concentration and cost structure. Analyzing cost data from a sample of manufacturing firms, we find that suppliers exhibit more rigid cost structure when both product market competition and customer concentration are high. In further analysis, we find that the effect of competition on the relationship between customer concentration and cost structure is isolated to the COGS and COGM. Our results suggest that suppliers trade off the downside risk of having fixed costs that cannot be reassigned with the potential upside benefit of meeting major customer demands.

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供应商的产品市场竞争、客户集中度与成本结构

我们考察了供应商的产品市场竞争如何影响客户集中度与成本结构之间的关系。通过对一个制造企业样本的成本数据分析，我们发现，当产品市场竞争和客户集中度都很高时，供应商的成本结构会更加僵化。在进一步的分析中，我们发现竞争对客户集中度与成本结构之间关系的影响与COGS和COGM是孤立的。我们的研究结果表明，供应商权衡了无法重新分配的固定成本的下行风险和满足主要客户需求的潜在上行利益。

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.