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Keywords

customer concentration, debt financing cost, operational risk, information risk

Abstract

Under the external environment of great downward economic pressure and rising labor costs,controlling debt financing costs has become the key problem that private enterprises need to solve urgently.Based on 11 276 annual data of A-share private listed companies in Shanghai and Shenzhen from 2010 to 2019,this paper studies the influence of customer concentration on their debt cost.The results show that:there is a "positive U-shaped"relationship between the debt cost of private listed companies and customer concentration,and the customer concentration is about 41.59%at the inflection point.Customer concentration affects the cost of debt financing by influencing the business risk and information risk of the enterprise.

DOI

10.16315/j.stm.2021.03.002

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