Corporate Resilience Research Articles

Does managerial bank relationship network matter corporate resilience? Evidence from the COVID-19 crisis

This study examines the effect of managerial bank relationship networks on corporate resilience to the COVID-19 crisis. We find that managerial bank relationship network helps firms experience fewer losses and recover more quickly during the COVID-19 crisis. We document that managerial bank relationship networks help firms build corporate resilience by facilitating financing accessibility. Further analysis shows that its positive effect is more significant if managers have state-owned bank work experience or have a higher bank hierarchy. Furtherly, the positive effect of the managerial bank relationship network is primarily found in firms with less government support and low marketization regions. These findings provide new insights on enhancing corporate resilience and prompting the bailout policies implementation by stimulating the positive role of managerial bank relationship network.

Geographic dispersion and corporate resilience during the COVID-19 pandemic

This study demonstrates the positive role of geographic dispersion in corporate resilience to the COVID-19 pandemic in the context of China. This association is more pronounced when firms are highly dependent on the domestic market, less likely to obtain enough financing, highly apply digital technology, and have low customer concentration. This association is attributable to the following three channels: a diversified portfolio, the maintenance of business relationships, and access to non-local resources. Overall, our findings provide a more nuanced picture of the potential impacts of corporate diversification on corporate resilience.

Benchmarking Corporate Resilience and Sustainability – a framework for assessing corporate positioning in the face of uncertainty and risk

Low carbon is still a key stock market theme, but war and changing economic conditions through 2022 have placed greater emphasis on the security of supply. Yet our longstanding view still holds: the energy transition will happen, and oil and gas companies have significant value at risk. In the face of tightening carbon policies or the eventual decline in oil and gas demand, companies that fail to adapt to the emerging low-carbon world will suffer a deterioration in market rating. Plotting a strategy for the energy transition has become more complex than ever. Satisfying investors, government and public stakeholders while pursuing secure, affordable and sustainable sources of energy requires a delicate balance. Unanticipated shocks like the global pandemic or Russia’s invasion of Ukraine make strategic planning a veritable high-wire act. The complexity in mapping out an approach to the energy transition makes it even harder to benchmark the different strategies companies may employ. How are companies positioned to navigate the energy transition over the coming decades? Which companies are best situated to handle shocks to the market in the next few years? We believe these questions of near-term resilience and long-term sustainability can be answered by examining (a) a company’s financial position and scale, (b) its portfolio outlook and (c) its carbon exposure and transition strategy. Building on these concepts of Corporate Resilience and Sustainability, we can compare the strategies of Australia’s largest energy players against their international peers. We can highlight their strengths, weaknesses and areas for focus. We can show you what ‘best-in-class’ looks like.

Corporate culture and firm resilience in China: Evidence from the Sino-US trade war

Prior literature shows that corporate culture matters for firm performance and enhance corporate resilience in crises. We construct a text-based measure of corporate culture for Chinese listed firms and study whether and how strong corporate culture improves corporate resilience during the Sino-US trade war. Empirical analyses suggest that a strong corporate culture mitigates the deteriorating stock returns due to the trade war exposure through two potential influencing mechanisms, enhancing operating performance and mitigating financial constraint. Results also indicate that strong culture works more effectively for privately owned enterprises (POEs) than their state-owned peers, and individual cultures of innovation, hardworking, teamwork, and quality have material effects on stock performance of the POEs. The evidence pinpoints that strong corporate culture helps insulate Chinese private firms more from external shocks and achieve a more sustainable growth.

SOCIAL CAPITAL, CORPORATE RESILIENCE AND COMPETITIVENESS DURING PANDEMIC: INDONESIA’S MARINE TRANSPORTATION SERVICES COMPANIES CASE STUDY

Corporate resilience and competitiveness during a pandemic are largely determined by how the company manages its resource capital. This study examined how corporate resilience and competitiveness of marine transportation service companies that rely on social capital with a review point of view from the theory of dynamic capabilities and the resource base-view theory. Using an online method survey with a sample of 446 marine transportation service companies throughout Indonesia. The data were analyzed using multivariate analysis with GSCA application (generalized structured component analysis) and multigroup analysis to examine company age and company size as variable control. The results showed that social capital was associated with corporate resilience and competitiveness as well. The result also showed that corporate resilience was not associated with competitiveness. Meanwhile, in terms of company size, it was associated with a small company. On the contrary, competitiveness was associated with corporate resilience. This study contributes a new empirical finding to the dynamic capability theory and resource base view-based (RBV) competitiveness theory. This study also contributes to the practical implication that social capital in the form of the strength of relations with external is useful for competitiveness and in maintaining the sustainability of the company.

Factors Affecting The Level of Corporate Resilience as The Impact of The Covid-19 Pandemic in Indonesia

This study aims to provide empirical evidence on the impact of corporate social responsibility, corporate governance, sales growth, and corporate size on corporate resilience. The purposive sampling technique obtained a sample of 44 companies registered in IDX80 as of February 2020. This study uses corporate quantitative methods with secondary data from sustainability reports and annual reports published by each corporate through the website www.idx.co.id or its official website. Data analysis in this study uses multiple linear regression analysis with IBM SPSS 25 software. The findings of this study are that partially, CSR on the topic of Environment has no significant effect on corporate resilience, but the topic of Economics and Social affect corporate resilience significantly. Corporate governance on the board of commissioners and directors has no significant effect on corporate resilience, but the board of audit committee significantly affects corporate resilience. Sales growth and corporate size significantly affect the corporate's resilience. Then, CSR, corporate governance, sales growth, and corporate size significantly affect the corporate's resilience.

CORPORATE GOVERNANC, CORPORATE SOCIAL RESPONSIBILITY DAN KETAHANAN PERUSAHAAN DI INDONESIA

This study aims to provide empirical evidence about the influence of internal corporate governance mechanisms and corporate social responsibility on corporate resilience. This research's novelty is to analyze companies' resilience during the Covid-19 pandemic in Indonesia from March to September 2020. Data analysis in this study used SmartPLS 3.3.9 software. Based on the purposive sampling technique, a sample of 44 companies was obtained, which were registered at IDX80 as of February 2020. The findings of this study are that CSR on the topic of Environment does not have a significant effect on corporate resilience; however, Economic and Social topics have a significant effect on corporate resilience. Corporate governance on the board of commissioners and directors has no significant effect on corporate resilience, but the audit committee significantly affects corporate resilience. Other findings in this study indicate that Firm Size and Sales Growth significantly affect corporate resilience. The results of this study help investors and management understand the importance of CG, CSR, Firm Size, and Sales Growth in building corporate resilience in facing the coming crisis.

Corporate Social Responsibility dan Ketahanan Perusahaan Dalam Menghadapi Pandemik di Asia Tenggara

This study aims to find empirical evidence regarding the influence of CSR on corporate resilience in facing the COVID-19 pandemic in Southeast Asia during the first and second waves of the pandemic. The independent variable in this research is the company's CSR which consists of economic, environmental and social disclosures, while the dependent variable is company resilience. There were 175 companies as research samples in the first wave and 176 in the second wave. Data is obtained from sustainability reports and annual reports published by each company through its official website. Using SmartPLS 3.3.9, it was found that, both in the first and second waves of COVID-19, overall CSR had a positive effect on corporate resilience. In the first wave, disclosure of economic topics had a positive effect on corporate resilience, but disclosure of environmental and social topics had a negative effect. In the second wave, disclosure of social topics had a positive effect on corporate resilience, but disclosure of economic and environmental topics had a negative effect. The implications of this research show that companies need to disclose their business continuity activities during a pandemic to increase corporate resilience. With the longer the pandemic lasts, social activities are more important than economic and environmental activities. The results of this study can enrich knowledge in the field of sustainability accounting which is useful for company management in managing corporate sustainability and also for investors in choosing their investment objects.

Corporate Resiliency and Relevancy in the Private Ordering Era

Firm-specific private ordering has flourished in the twenty-first century. Public companies are seeing more and more governance contracting in traditional venues such as the bylaws and charter, as well as in less conventional places like shareholder agreements and dual-class-like contracts. Decisions legitimizing private ordering in the corporate setting contain strong contractarian language and rely heavily on contract—and not corporate—principles to justify their holdings. In addition, recent statutory amendments have chipped away at traditionally mandatory features of the corporation, thereby reinforcing the contractual view of the corporate form and fueling the private ordering movement. All told, the current trajectory of corporate law appears to privilege freedom of contract and the contractarian theory above other principles and theories of the firm.
 Noticeably absent from recent corporate jurisprudence, however, is any meaningful discussion of the rationale for, and consequences of, intertwining contract and corporate law in such an intimate way. Engaging in this discussion is critical, as the expansion of corporate contractual freedom and the corresponding judicial embrace of contractarian principals have important implications for corporate law and the role of the corporation in the business entity ecosystem. This Article discusses some of the impacts to the corporate form, corporate theory, and the corporation’s role in society resulting from the prioritization of contractual freedom.

Disaster response: The COVID-19 pandemic and insider trading around the world

This paper investigates how corporate insiders respond to the initial COVID-19 outbreaks. Using comprehensive insider transaction data from 25 countries, we document a consistent pattern of insider selling during the month after the first COVID-19 case is confirmed in a given country. Insider selling during these disease outbreaks is less pronounced in countries with higher information disclosure requirements, higher public enforcement index, a more efficient judiciary system, and stronger investor protection. Furthermore, cultural differences and the stringency levels of government responses to the COVID-19 outbreaks help moderate insider panic selling when health disasters strike. The findings suggest that a transparent, reliable business system contributes to rebuilding investor trust and corporate resilience during crises.

Strategies to Enhance The Resilience And Service Performance of Frontline Employees of PT Bank XYZ Makassar Regional Office

The Covid-19 pandemic has brought many changes to the business world and the Indonesian economy. Corporate resilience is essential for business continuity and recovery amid such a crisis. This study aims to analyze the effect of a high-performance work system (HPWS) on employee resilience and service performance at Bank XYZ Makassar Regional Office and determine the right strategy to improve employee resilience and service performance. An online survey was conducted among 336 frontline employees of Bank XYZ Makassar Regional Office, and the data were processed using the SEM-PLS method to determine the effect between variables. The results showed that the HPWS variable had a positive and significant effect on Employee Resilience. Employee Resilience has a positive and significant effect on Employee Service Performance. HPWS directly or indirectly has a positive and significant effect on the variables of Employee Resilience and Employee Service Performance. To improve Employee resilience and Service Performance, the company's employees must re- planning the HR planning system and re-designing the workflow of frontline employees. Keywords: bank, employee resilience, employee service performance, frontliner, high-performance work system (HPWS)

Investigate the Impact of Employee Diversity on Resilience of External Crises: Evidence from A-share Listed Company

Resilience has emerged as a crucial measure of a company’s ability to withstand challenges in the current complex business environment. However, prior research indicates that employee diversity may not consistently lead to a positive impact on corporate resilience. This paper investigates the impact of diversity on resilience in the face of various external crises by examining the performance of Chinese listed companies during the 20-year period following their accession to the World Trade Organization. Employee diversity is operationalized in this study by changes in the number of employees in non-core departments, while resilience is represented by the fluctuation of the stock price minus the industry range fluctuation. Employing a fixed-effect model to analyze 20-year panel data, we find that an increase in employee diversity does not always lead to improved corporate resilience during external crises. The purpose of this paper is to examine the relationship between employee diversity and resilience in the face of different external shocks and explore why diversity may fail to enhance resilience during such circumstances.

Corporate resilience in the face of COVID-19: A proposal measurement index

The paper aims to revisit the business resilience concept in the specific case of the COVID-19 pandemic. We examine firm resilience factors in ten European and Mediterranean countries. Through a cross-sectional study of a sample of 3,722 firms in all industries, we analyze how firms have survived the crisis. By constructing a multidimensional index identifying resilient companies, the paper contributes to the theoretical and empirical literature and defines a methodology that assesses a firm’s resilience to promote a business strategy that encourages the growth process and develops new aptitudes to cope with future crises.

How to Enhance Corporate Resilience under Public Health Crisis

How to Enhance Corporate Resilience under Public Health Crisis

Trust Relationship with Suppliers, Collaborative Action, and Manufacturer Resilience in the COVID-19 Crisis.

Frequent emergencies highlight the importance of corporate resilience, and relationship governance behaviors have received much attention for improving firms' resilience. This study uses structural equation modeling to test hypotheses based on trust theory and synergy theory. It investigates the impact of the behavioral operations management approach of collaborative action on manufacturers' resilience in Chinese manufacturing firms during the COVID-19 pandemic. Environmental uncertainty is used as a moderating variable to explore its role between the trust relationship with suppliers and collaborative action, which are two types of relationship management behaviors. The results show that collaborative action positively affects each of the three stages of manufacturer resilience. Moreover, collaborative action mediates between the trust relationship with suppliers and the different dimensions of manufacturer resilience. Environmental uncertainty does not moderate the facilitative effect of the trust relationship with suppliers on collaborative action. This study examines the relational governance behavior of firms in the context of a particular Chinese culture to build a bridge between relational governance behavioral science and firm resilience management. This study tries to provide inspiration for managers to improve the risk management ability of manufacturing enterprises by using relationship management theory and behavioral science.

Alfa Company adequacy plan to LGPD and implementation of good corporate governance practices

Law 13.709/18, General Law for the Protection of Personal Data (LGPD), applies to the processing of personal data. In this context, this study aims to propose the adequacy of Empresa Alfa, with regard to the processing of personal data, in order to ensure protection, security and Compliance in accordance with the LGPD, in addition to expanding the look at Corporate Governance, under a holistic view, thus contributing to the company's modernity, integrity, security, innovation, speed, transparency, assertiveness and global positioning. The challenge of reconciling agile innovation with the growing need for companies to have solid governance, risk elimination and security processes is a big challenge, as the absence of such expedients increases problems for the company, such as financial ones. (fines, lawsuits), image (leakage), continuity (data loss), among others. For a company to grow with corporate resilience, it needs a strong governance, security, risk and compliance structure.

Leadership in a pandemic: Do more able managers keep firms out of trouble?

The Coronavirus crisis has led to unprecedented economic shocks to the corporate world and challenged how corporate management contributes to business resilience amid the pandemic. Employing a novel measure of managerial ability constructed for a large sample of U.S. publicly listed firms, we document that firms led by higher managerial ability exhibit lower stock return volatility, higher operating performance, and lower levels of default risk amid the pandemic. A difference-in-differences analysis suggests that the impact of managerial ability on firm performance is stronger during the pandemic than during the pre-pandemic period. The effect of managerial competency on corporate resiliency is more pronounced among firms that have high exposure to COVID-19. In addition, firms led by high managerial competency management are associated with higher stock liquidity and are less likely to exhibit employment, healthcare, safety, and consumer protection related violations amid the pandemic.

Are you resilient? Machine learning prediction of corporate rebound out of the Covid‐19 pandemic

AbstractWe use the Covid‐19 crisis to assess how four capability domains that traditionally support corporate performance (agility, innovation, ecosystem play and digitization) can also predict corporate resilience, among global firms. Our results are based on a blend of advanced machine learning techniques that capture the complementarities among capabilities. We confirm that dynamic capabilities boost recovery, but especially when linked with aggressive leadership posture, e.g. rebound is more likely when firms are the main player/orchestrator of their business ecosystems as well as when they invest in disruptive, as opposed to incremental innovations.

RETRACTED: Digital Transformation and Enterprise Resilience: Evidence from China

Digital transformation has become a key strategy for enterprises to enhance resilience in effectively responding to external shocks and achieving sustainable development in the context of the global spread of the epidemic and the increase of uncertainties in external environments. In this paper, the impact and mechanism of digital transformation on corporate resilience are examined based on data of listed Chinese companies from 2007 to 2020. Our research results reveal that digital transformation can significantly enhance corporate resilience. This conclusion remains unchanged after controlling for endogeneity issues and performing various robustness analyses. Digital transformation has heterogeneous effects in the dimensions of corporate property rights, industries, and regions, with state-owned enterprises, manufacturing, and eastern enterprises benefiting more. Digital transformation primarily reinforces corporate resilience through mechanisms that improve human capital, strengthen innovation capabilities, ease financing constraints, and enhance internal control. Therefore, the government must guide macro policies, pay attention to the leading role of state-owned enterprises, and narrow the regional digital divide to better enact digital transformation and promote corporate resilience. Simultaneously, in the process of digital transformation, enterprises should combine the characteristics and development stages of their industry by exploring the development requirements and strategically implementing them in stages in a targeted manner. The findings of this paper provide new empirical evidence for the economic impact of enterprise digital transformation, as well as useful inspiration for enhancing enterprise resilience and promoting high-quality development.

Management Development and Corporate Resilience: A Review of Literature

The paper examined the connection between management development and corporate resilience. The business environment is so dynamic with external forces far beyond manager’s control. Managers are trying persistently to increase the performance of their organizations irrespective of the type and purpose of an enterprise, its managers or leaders seek to enhance the way an enterprise conducts its business by adopting management practices which aim to improve effectiveness, efficiency, safety, including resilience. Any organization's capacity for resilience can be judged by its ability to uphold its standards and persevere in the face of numerous agitations nowadays. One way to mitigate this seemingly fast changing business environment is through management development. Corporate resilience, on the other hand, is the capacity of an organization to endure, and perhaps even prosper, during times of adversity. On the other hand, management development is the process of educating and training staff members to become effective managers while also tracking the development of those talents through time. Management development has its dimensions such as on- the –job training, job rotation and understudy position while the corporate resilience has it measure as adaptive capacity, situation awareness and keystone vulnerability. Research findings shows that management development significantly affects corporate resilience (adaptive capacity, situation awareness and keystone vulnerability) in the organization. The article comes to the conclusion that businesses today, which are an essential element of society, are faced with a wide range of risks that they must recognize, assess, and manage in order to stay in operation. This paper recommends that management should accentuate the factors that positively impact on their corporate resiliency such as training on the job, job rotation and understudy position. We also recommend for further studies should be carried out to gain more insight into corporate resilience in the organization.