IDEAS home Printed from https://ideas.repec.org/a/eee/finana/v105y2025ics1057521925005186.html
   My bibliography  Save this article

Does dialect similarity affect customer stability: Evidence from corporate trust and friction

Author

Listed:
  • Zhang, Xuehua
  • Zhong, Yun
  • Liu, Zhenyu
  • Zhuo, Ye

Abstract

A stable customer relationship is a key factor for the long-term development of an enterprise and can convey a positive signal to the stakeholders of the capital market. This paper empirically examines the impact of dialect similarity on customer stability by selecting a sample of Chinese A-share listed companies from 2007 to 2022. Our findings reveal that dialect similarity is positively correlated with customer stability, suggesting that an increase in dialect similarity enhances customer relationship stability. Moreover, dialect similarity positively affects customer stability mainly through two channels, including increasing business trust and reducing transaction friction. Furthermore, the effect of dialect similarity on customer stability is more significant in private enterprises, regions with poorer supply chain operating environments, and provinces with lower levels of social trust. In conclusion, this study adds to the literature on the economic consequences of informal systems of culture from a new perspective and provides empirical evidence for policymakers and capital market participants to analyze the economic and social impacts of cultural traditions.

Suggested Citation

  • Zhang, Xuehua & Zhong, Yun & Liu, Zhenyu & Zhuo, Ye, 2025. "Does dialect similarity affect customer stability: Evidence from corporate trust and friction," International Review of Financial Analysis, Elsevier, vol. 105(C).
    • Handle: RePEc:eee:finana:v:105:y:2025:i:c:s1057521925005186
    DOI: 10.1016/j.irfa.2025.104431
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1057521925005186
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.irfa.2025.104431?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finana:v:105:y:2025:i:c:s1057521925005186. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620166 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.