Does Customer Concentration Affect CEO Turover?

As the market environment becomes more complex and changeable,the business philosophy of traditional enterprises has gradually shifted to the development model through upstream and downstream cooperation in the supply chain.The upstream and downstream cooperation in the supply chain will bring some big customers to the suppliers,while the big customers will bring a series of benefits to the suppliers,such as:reducing costs,stabilizing sales,increasing corporate reputation,etc.,but higher customer concentration It will lay down bad seeds for problems in business operations.For enterprises with high concentration of customers,they will be forced by the pressure of buyers,that is,the bargaining power of the oligarchy or the buyer.In the course of business,they will encounter huge threats of profit encroachment and business failure.Lead to an increase in business risk.Further,the increase in the company's operational risk conveys the current CEO's capability information,and the board of directors uses performance volatility to infer the level of competence that current CEOs are not easily observable.Through economic models and empirical analysis,Bushman et al.show that specific non-systematic risks within the company increase the probability of CEO change.From this perspective,it is of great practical significance to study the relationship between customer concentration and CEO change.In orientation of the above problems,this paper comprehensively uses theoretical research and empirical research methods to conduct in-depth research.This paper analyzes the relationship between customer concentration and CEO change based on customer characteristics data from 2008 to 2017 in China.After excluding financial industry companies and sample companies with missing financial data,5,750 initial samples were obtained.The research results show that:(1)The higher the concentration of listed customers,the higher the possibility of CEO change.(2)The impact of customer concentration on CEO changes is more obvious in private enterprises.(3)When the CEO has a political relationship,the correlation between customer concentration and CEO change is reduced.(4)Customer concentration further increases the possibility of executive change by reducing company performance.(5)The higher the customer concentration,the higher the degree of earnings management,further increasing the possibility of CEO change.Finally,the paper also carried out related robustness tests,including:replacing the explained variables;controlling the company's fixed effects and Heckman two-stage test,the test results are in line with expectations,verifying the accuracy of the research conclusions.The innovation of this paper is that,first of all,this article takes the unique perspective of customer concentration on the change of CEOs as the starting point,and deeply explores the relationship between the concentration of corporate customers and CEO changes,and enriches the economic effects of customer concentration..Secondly,this paper fully explores the implementation path of the relationship between enterprise customer concentration and CEO change.Based on the company's performance and earnings management,this paper discusses in detail the internal operation mechanism of corporate customer concentration affecting CEO change.Finally,this paper combines the relevant theories of customer relationship management and corporate governance mechanisms to conduct research,realize the combination of different disciplines,enrich the relevant literature on customer relationship management and corporate governance,and further develop customer concentration disclosure for policy makers.The factors that need to be considered by the policy provide corresponding empirical ideas and theoretical references,and have certain role in inducing jade.