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

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.