How much does Relational Capital matter during the Crisis. E How much does Relational Capital matter during the Crisis? E. Kuminova A.Bykova The Changing Role of Intangibles over the Crisis

Motivation for the Paper Strong and close relationships are considered as one of the most promising areas within the modern firm theory Focus on investigation of particular IC component: the transformation of relational capital resources into company value Does relational capital become more relevant for the process of value creation during the crisis?

Motivation for the Paper 2 Evidenence during the crisis: Dependence on the foreign capital led to the bancruptsy (at least decline of financial results) Contradictory facts about business associations (BA): the negative effect for companies who are in the strong dependence on their partners the minimization of and transaction costs and uncertainty caused by market failure Foreign capital employed has the negative impact on the value creation during the global economic crisis Participation in BA positively correlates with the value creation in terms of the strong financial constraints

RC Definition: several directions to the analysis RC as potential source for company’s financial prosperity: market, power, and cooperation links Internal features and structure of RC or social capital RC includes both the internal and the external dimensions

Research Framework: using HT-specification Market value added Time-varying exogenous indicators Time-invariant endogenous indicators Brand Power Top-universities Location in agglomeration Foreign capital Business Associations Time period Company age Number of employees EVA Industry Real GDP growth rate Control parameters

The analytical model for hypotheses where: Tvexogenous are time-varying exogenous variables; Tvendogenous are time-varying endogenous variables; Tiexogenous are time-invariant exogenous variables; εit is a vector of errors; t is a time period (for panel data) NB! + Bootstrap method (2000 replications )

Independent variables Estimation Results Independent variables Model Time varying exogenous Real GDP growth rate 3948.75 (3.02)*** Year 2008 -797.31 (-6.62)*** Company age -3.16 (-0.64) Number of employees 0.03 (2.13)** Brand power 5311.25 (3.85)*** Time varying endogenous Business associations 895.50 (1.69)* Foreign capital 380.97 (1.73)* EVA 0.87 (3.62)***

Independent variables Estimation Results Independent variables Model Time invariant exogenous Location in agglomeration 288.51 (0.97) Top-universities 688.64 (2.54)** Industry Dummy Manufacturing 851.27 (2.22)** Energy & Chemical 5738 (2.84)*** Constant -509.99 Sigma_u 6244.86 Sigma_e 3282.89 Rho (fraction of variance due to u_i) 0.78 Wald chi2 (18) 125.56 P> Wald chi2 (18) 0.00 Number of observations (number of groups) 6854 (988)

Empirical evidence: The positive impact of all relational capital inputs, excluding agglomeration effect Foreign capital employed is even more important for company value during the crisis period