Research On The Relationship Between Customer Stability And Equity Capital Cost Of The Corporate

In recent years,customer relationship management,introduced from the West,has gradually become the focus of enterprises.Enterprises adopt methods such as improving the satisfaction of customers,establishing big-data manageent to make the relationship between customers and enterprises stable.As an important external stakeholder of a company,customers influence the company's business strategy and business risks.On the one hand,customer relationship management facilitates information exchange and integrated marketing between the company and its major customers,reduces the cost of collecting information from third-party services,ensures the company's operating income to be effectively protected,reduces operating risks,and enables investors to have greater confidence on the company.On the other hand,companies or customers may be out of position as a result of asymmetric information,thereby triggering opportunistic behavior,increasing the company's operating risk and performance instability,making investors be less enthusiastic on investment.Whether there is a stable relationship between the company and its customer represents a certain degree of the company's business risk which communicates to the company's investors that the business condition is stable,and then the expected risk return of the investor reduces.This paper selects customer stability as the research object,and studies the effect of customer stability on the cost of equity capital of the company.It tries to prove that if the company is relatively stable with large customers,investors will perceive lower risks and lower yields when making investment decisions.Through the research on relevant data of listed companies from 2010 to 2016,the paper finds that the stronger the customer's stability,the lower the cost of corporate equity capital.On this basis,this article has conducted deep research on the mechanism of the relationship between them,and find that customer stability reduces the company's risk taking,thereby reducing the investor's required rate of return.In further study,this paper examines the degree of competition and the competitiveness of enterprises that may affect the relationship between customer stability and the cost of equity capital.To a certain extent,it is proved that the relationship between the customer stability and the cost of equity capital is significantly related only in the competitive industry or for the weak competitiveness of the enterprise itself.