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Leveraging customer stability to reduce idiosyncratic Risk: Insights from goal interdependence theory

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  • Wang, Xinyi
  • Zhang, Xiaoyu
  • Lu, Qiang

Abstract

Customers play an indispensable role in the long-term and secure growth of enterprises and serve as a vital element in the management of corporate risk. Moreover, the role of media sentiment in expanding investor awareness and reducing information asymmetry is of pivotal importance. Based on goal interdependence theory, this study constructs a theoretical model of how customer stability affects idiosyncratic risk. In addition, the moderating role of media sentiment in this relationship is also discussed. Using a sample of Chinese A-share listed companies, with data from 2007 to 2022, multiple regression analysis is employed to test the research hypotheses. The following research conclusions are drawn: First, customer stability is found to have a significant inhibitory effect on idiosyncratic risk. Second, positive media sentiment serves to intensify the negative impact of customer stability on idiosyncratic risk, whereas negative media sentiment serves to attenuate this negative impact. Third, customer stability exerts an inhibitory effect on idiosyncratic risk through the two mechanisms of alleviating financing constraints and enhancing information transparency. Fourth, the inhibitory effect of customer stability on idiosyncratic risk is present in scenarios of high supply chain uncertainty, non-state-owned firms, and small-size firms. This research contributes to the existing body of knowledge on goal interdependence theory in the field of operations and supply chain management.

Suggested Citation

  • Wang, Xinyi & Zhang, Xiaoyu & Lu, Qiang, 2026. "Leveraging customer stability to reduce idiosyncratic Risk: Insights from goal interdependence theory," Journal of Retailing and Consumer Services, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:joreco:v:88:y:2026:i:c:s096969892500298x
    DOI: 10.1016/j.jretconser.2025.104519
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