The Impact of Bargaining Power of Upstream and Downstream Enterprises on Capital Structure
This paper examines the effect of upstream & downstream enterprises bargaining power on a firms capital structure. Because debt can shield a firms revenue from the threat of transaction partner with strong bargaining power, a firm can decides its capital structure according to upstream & downstream firms bargaining power. Based on it, this paper makes the hypothesis that a firms debt level is positively related to its upstream & downstream firms bargaining power. Furthermore, we choose a set of Chinas listed companies as research sample, treats the numbers of upstream & downstream firms as the proxy variable for the bargaining power, then conduct an empirical research using static model and dynamic adjust model respectively. It was found that (1) If the product market competition intensity is controlled, a firms financial leverage is obviously correlates negatively with the numbers of upstream & downstream firms, and the more the number of firms in an industry, the stronger the negative correlation; (2)a firms capital structure adjusts dynamically according to its upstream & downstream firms bargaining power. The more the upstream & downstream enterprises bargaining power decreased, the less deviation of a firms capital structure from the target level.
Capital Structure Upstream & Downstream Enterprises Bargaining Power
WU Gang XU Laping
Faculty of Construction, Shenzhen Polytechnic, P.R.China,518055 Baoan Development Research Center, Shenzhen, P.R.China, 518000
国际会议
The 5th International Sympsium for Corporate Governance(第五届公司治理国际研讨会)
天津
英文
1118-1124
2009-09-01（万方平台首次上网日期，不代表论文的发表时间）