Abstract：Based on the loss of the executive-customer relationship, this study examines the effect of the executive-customer relationship on customer stability. Taking A-share listed companies from 2005 to 2018 as samples, we use executive turnover to measure the loss of the executive-customer relationship and customer concentration to measure the strength of the executive-customer relationship. We find that, compared with companies with low customer concentration, the loss of the executive-customer relationship in companies with high customer concentration will significantly reduce customer stability, and this effect is mainly concentrated in non-state-owned firms and firms with longer executive tenure. Furthermore, mechanism analysis shows that the negative impact of the loss of executive-customer relationship on customer stability is via the channel of increasing the degree of information asymmetry and reducing the degree of trust. Considering the loss of the executive-customer relationship, companies will increase the expense of R&D investment.
