TITLE:
The Impact of Customer Concentration on the Tunneling of the Large Shareholders
AUTHORS:
Qinying Yuan
KEYWORDS:
Large Shareholder’s Tunneling, Customer Concentration, The Governance Effect, The Mediating Effect
JOURNAL NAME:
Modern Economy,
Vol.11 No.2,
February
18,
2020
ABSTRACT: With the increasing concentration of the
shareholding, the tunneling of the large shareholders has gradually become a
hot topic in the field of corporate governance, which is a problem that is common
in China’s listed companies and needs to be solved urgently. This paper applies
the supervisory role of stakeholders to corporate governance. Based on the
research sample of non-financial listed companies in China from 2010 to 2017,
we empirically examined the impact of customer concentration on the tunneling
of the large shareholders. The research results show that the higher the
concentration of customers, the lower the possibility of large shareholders’
tunneling; the cash holdings have an intermediary role in the relationship
between customer concentration and the tunneling of large shareholders;
compared with those with low market position. The negative correlation between customer
concentration and the tunneling of large shareholders is more pronounced in
companies with high market positions. The conclusions of this paper are not
only conducive to further understanding the corporate governance role of
stakeholders, but also help to improve the corporate governance and protect the
interests of investors.