The effects of supply chain concentration on working capital management, firm performance and bankruptcy risk: Empirical evidence from China's automobile manufacturing industry

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Luo, Nachuan (2022) The effects of supply chain concentration on working capital management, firm performance and bankruptcy risk: Empirical evidence from China's automobile manufacturing industry. [Dissertation (University of Nottingham only)]

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Abstract

The purpose of this dissertation is to explore the effects of supply chain concentration in the Chinese automobile manufacturing industry. Past literature has mainly examined the effect of customer concentration from the perspective of firm performance, but rarely from the perspective of working capital management and bankruptcy risk. As a result, this dissertation applies an empirical analysis to investigate the effects of supplier concentration and customer concentration on working capital management, firm performance and bankruptcy risk and the effect of working capital management on firm performance.

This dissertation uses a sample of 86 Chinese listed companies in the automobile manufacturing industry from 2016-2020 to construct multiple regression models to test the hypotheses and use stata16.0 to analyse the results. The empirical results show that high supply chain concentration of Chinese automobile manufacturing firms has a negative impact on working capital management and firm performance, but a positive impact on mitigating bankruptcy risk. The analysis reveals that there is both cooperation and competition between the Chinese automobile manufacturing industry and upstream and downstream companies.

Through literature review and empirical analysis, this dissertation aims to provide sound and scientific policy recommendations on how companies can achieve risk-return balance by adjusting supplier and customer concentration, and also enrich the literature in the field of supply chain management and working capital management.

Item Type: Dissertation (University of Nottingham only)
Depositing User: Luo, Nachuan
Date Deposited: 28 Apr 2023 09:33
Last Modified: 28 Apr 2023 09:33
URI: https://eprints.nottingham.ac.uk/id/eprint/68158

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