Drawing on faultline theory and organizational resilience literature, we examine the differential effects of relationship-related faultlines (age, gender, education) and task-related faultlines (functional background, tenure) on firms' stock price performance during two distinct COVID-19 pandemic stages: initial drop and recovery. We theorize that relationship-related faultlines exacerbate initial stock price declines through interpersonal conflicts, while task-related faultlines amplify the drop through information segmentation. Conversely, during recovery, relationship-related faultlines enhance performance via inter-group unionization, and task-related faultlines contribute through diverse knowledge perspectives. Analyzing 2,384 U.S. public firms comprising 27,735 TMT members, we find both faultline types magnify initial price declines but accelerate subsequent recovery. This study advances understanding of TMT faultlines' varying effects on organizational resilience across different crisis stages.
