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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
Wei, Jiuchang Li, Zhi Ziegler, Alexander H. Chen, Haipeng (Allan)
Wei, Jiuchang
Li, Zhi
Ziegler, Alexander H.
Chen, Haipeng (Allan)
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2025-12-16
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Article
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Keywords
Corporate crisis,Firm value,Guanxi,Ownership,Political ties,Subsidiary
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Citation
Wei, J., Li, Z., Ziegler, A. et al. All relationships are not created equal: the effects of inter-organizational relationships on subsidiary’s value at the onset of corporate crises. Asia Pac J Manag (2025). https://doi.org/10.1007/s10490-025-10060-2
Abstract
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. © The Author(s) 2025.
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This is an open access article under the CC BY license.
Publisher
Springer
Journal
Asia Pacific Journal of Management
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02174561