Customer Concentration and Analyst Following : Evidence from China

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