Can the Stability of Customers in the Supply Chain Promote Financial Market Stability?A Perspective Based on Stock Price Crash Risk
This study used data on dynamic shifts in the top five customer structures of com-panies listed on the Shanghai and Shenzhen A-share markets from 2010 to 2020 to empirically assess whether customer stability in the supply chain reduces the risk of corporate stock price cra-shes.The study explored the influence of customer stability in the product market on the safety and stability of the stock market and broader financial market system.The findings indicate that a higher degree of customer stability is associated with a reduced risk of stock price crashes for companies.Heterogeneity tests demonstrated that the protective effect of customer stability against stock price crash risk is more pronounced in firms with weaker external oversight,elevated cus-tomer concentration,increased operational complexity,and geographical closeness to their custom-ers.Customer stability mitigates stock price crash risk via two principal channels:lowering opera-tional risk and improving information disclosure quality.The study's recommendations include continued governmental actions to ensure industrial and supply chain stability,proactive mainte-nance by corporate management of stable customer relationships and inclusion of key customers in governance,and vigilant monitoring by investors of listed companies'customer structure changes and their potential effects.
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