Empirical Relationship Between Slack Resource And Performance Volatility In The Financial Crisis Environment

Scholars have been controversial whether slack resources can deal with external mutations, resist unexpected risks and improve organizational flexibility. After the2008financial crisis, the external environment of business is complex, researchs on slack resources were supported by domestic and overseas scholars. In the financial crisis environment, the slack resources which are cumulative resources in business can help cope with the external environment of the mutation and play as a buffer role. But there are not enough empirical evidence for the buffer role of slack resources. The financial crisis is an unknown and uncontrollable nmutation of external environment, which provides a good situation to test slack resources’buffering role.This paper sets the financial crisis situations as the background for the study, at the same time verifies the buffering role of slack resources by analyzing the relationship between slack resources and corporate performance volatility. Therefore,this paper selects4086samples which list in the Shanghai Stock Exchange and the Shenzhen Stock Exchange from the year2005to2010.The paper sets total corporate performance and performance volatility (risk perspective) analysis as a starting point, analyzes slack resources on the company performance volatility transverse and longitudinal effects. Meanwhile, the paper joins the financial crisis to make the study more meaningful. This study found that:1) the analysis on slack resources found that there is a significant correlation between the slack resources and volatility of the performance of the company, slack resources can improve business performance, but also increases corporate performance’s risk;2) Through the analysis on different types of slack resources found the greater available slack and potential slack, the higher the company’s performance, and the smaller the risk of the performance of the company volatility; recoverable slack will reduce redundancy corporate performance, and increase business performance risk;3) by adding the financial crisis environment, positive relationship between available slack,the potential slack and company performance.On this basis, the paper combined with Chinese current reality and the actual situation of enterprises put forward relevant policy recommendations.