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Customer concentration and analyst following: Evidence from China

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Listed:
  • Lingchen Liu
  • Yan Gu
  • Kung‐Cheng Ho
  • Chiu‐Lan Chang

Abstract

This study explores the influence of customer concentration on analyst following based on Chinese listed companies. Companies with higher customer concentrations have lower degrees of analyst following. The suppression effect of customer concentration on analyst following is more significant in industries with fierce competition. In companies with a longer accounts payable turnover cycle, the suppression effect of customer concentration on analyst following is more significant. Overall, our results suggest that the concentration of a supplier's customers greatly influences the corresponding behavior of analysts.

Suggested Citation

  • Lingchen Liu & Yan Gu & Kung‐Cheng Ho & Chiu‐Lan Chang, 2022. "Customer concentration and analyst following: Evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(1), pages 97-110, January.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:1:p:97-110
    DOI: 10.1002/mde.3361
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    Cited by:

    1. Su, Kun & Zhao, Yan & Wang, Yinghui, 2024. "Customer concentration and corporate financialization: Evidence from non-financial firms in China," Research in International Business and Finance, Elsevier, vol. 68(C).

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