The Impact of Customer Concentration on the Tunneling of the Large Shareholders
- 1 Jinan University, Guangzhou, China
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.
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