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The power of clans: How social capital sheltered firms during the COVID-19 pandemic

Author

Listed:
  • Liu, Linqing
  • Yang, Lisi
  • Yan, Kai

Abstract

Data from 3,555 Chinese listed firms show that firms in cities with greater clan strength faced smaller losses and swifter recovery following COVID-19. Clans were significantly related to individual values facilitating pandemic prevention; these ties guaranteed economic activities and sheltered firms from the shock. Our results frame social capital as a complementarity to formal institutions during crises.

Suggested Citation

  • Liu, Linqing & Yang, Lisi & Yan, Kai, 2023. "The power of clans: How social capital sheltered firms during the COVID-19 pandemic," Economics Letters, Elsevier, vol. 229(C).
    • Handle: RePEc:eee:ecolet:v:229:y:2023:i:c:s0165176523002495
    DOI: 10.1016/j.econlet.2023.111224
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    References listed on IDEAS

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    More about this item

    Keywords

    Social capital; Resilience; Family clans; Social distancing; COVID-19;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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