Signals of excellence: how corporate awards enhance major customer stability in China

Winning awards is an important form of non-financial information disclosure for enterprises that may affect the stability of their trading relationships with major customers. Using data from A-share listed companies in China from 2009 to 2024, this study examines the impact of corporate awards on major customer stability. The findings reveal that corporate awards have a significant positive effect on major customer stability, particularly in firms facing intense competition, possessing weaker bargaining power, and operating in the mature stage of their lifecycle. Mechanism analysis reveals that corporate awards primarily enhance major customer stability through two channels: improving information transparency by supplying non-financial information and strengthening reputation by generating favorable external evaluations. Further analysis shows that corporate awards are mainly associated with downstream major customer stability and are not significantly associated with upstream major supplier stability, thereby clarifying the receiver-specific boundary conditions of award signals in supply chain relationships. This study provides new empirical evidence and valuable insights for companies aiming to cultivate stable major customer relationships.