The role of large shareholder holdings in customer concentration and stock price volatility

Xiaolong Li and Xue Shi

Finance Research Letters, 2024, vol. 65, issue C

Abstract: This paper study of the relationship between customer concentration and stock price volatility using a sample of China's A-share listed companies from 2012 to 2022. It is found that the increase in customer concentration has a significant negative impact on stock price volatility. The share price of companies with state-owned backgrounds is relatively less affected by customer concentration. Increased customer concentration in companies with a high proportion of shares held by principal shareholders leads to increased share price volatility. The results of this study have important implications for understanding the impact of firm-customer relationships on stock price stability.

Keywords: Customer concentration; Stock price volatility; Major shareholder shareholding (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:65:y:2024:i:c:s1544612324006731

DOI: 10.1016/j.frl.2024.105643

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