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<p>Drawing upon the resource dependence theory, we investigate how subsidiaries can leverage their relationships with a parent company and its resources to protect firm value at the onset of a corporate crisis. Analyzing 153 corporate crises befalling publicly listed mixed-ownership enterprises in China from 2008 to 2018, we discover that a formal (e.g., ownership) relationship is a burden, while an informal relationship (e.g., <i>guanxi</i>) serves as buffer, in affecting a listed firm’s market value immediately after a crisis. Additionally, we find the burdening effect of a formal relationship is attenuated. In contrast, the buffering effect of an informal relationship is exacerbated by a parent company’s political ties to the central government. We discuss our contributions to resource dependence theory and practice.</p>

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All relationships are not created equal: the effects of inter-organizational relationships on subsidiary’s value at the onset of corporate crises

  • 期刊论文

  • 出版模式：

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  • 发表日期：

    2025年12月16日

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  • Jiuchang Wei,
  • Zhi Li,
  • Alexander H. Ziegler,
  • Haipeng Allan Chen

摘要

Drawing upon the resource dependence theory, we investigate how subsidiaries can leverage their relationships with a parent company and its resources to protect firm value at the onset of a corporate crisis. Analyzing 153 corporate crises befalling publicly listed mixed-ownership enterprises in China from 2008 to 2018, we discover that a formal (e.g., ownership) relationship is a burden, while an informal relationship (e.g., guanxi) serves as buffer, in affecting a listed firm’s market value immediately after a crisis. Additionally, we find the burdening effect of a formal relationship is attenuated. In contrast, the buffering effect of an informal relationship is exacerbated by a parent company’s political ties to the central government. We discuss our contributions to resource dependence theory and practice.