IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v59y2024ics1544612323011856.html
   My bibliography  Save this article

More resources are better? Strategic alliance involvement and cost stickiness

Author

Listed:
  • Chen, Wenrui
  • Hong, Yun
  • Liu, Xinghe
  • Xu, Cheng
  • Gao, Jun

Abstract

Utilizing a sample of Chinese listed firms from 2007 to 2020, we document that cost asymmetry behavior is amplified when firms engage in alliance activities. The main effect is more pronounced for firms facing higher adjustment costs, pronounced agency problems, and those led by particularly optimistic managers. Additional analyses suggest that the presence in alliances augments cost stickiness, especially when alliance members come from diverse industries, are significantly larger in scale, or are situated in different geographical regions. The results offer fresh insights into how strategic alliances influence firms’ resource adjustment decisions.

Suggested Citation

  • Chen, Wenrui & Hong, Yun & Liu, Xinghe & Xu, Cheng & Gao, Jun, 2024. "More resources are better? Strategic alliance involvement and cost stickiness," Finance Research Letters, Elsevier, vol. 59(C).
    • Handle: RePEc:eee:finlet:v:59:y:2024:i:c:s1544612323011856
    DOI: 10.1016/j.frl.2023.104813
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612323011856
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2023.104813?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:59:y:2024:i:c:s1544612323011856. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.