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Published on: November 10, 2023
Geographic dispersion and corporate resilience during the COVID-19 pandemic
Fei Jiang1, Dongmin Kong2, Zhengfei Lu1
1Guanghua School of Management, Peking University, 5 Yiheyuan Road, Haidian, Beijing, PR China.
Abstract:
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.
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