Research On The Influence Of Corporate Strategic Differences On Financing Behavior

At present,China’s economy has entered the new normal,and its economic development is characterized by speed change,structural optimization and power transformation.Adapting to,grasping and leading the new normal is the general trend of China’s economic development at present and in the future.However,the prominent feature of the economy after entering the new development stage is the imbalance between supply and demand,and the main aspects of the contradiction are concentrated on the supply side.The CPC Central Committee with Comrade Xi Jinping at its core put forward "advancing structural reform of supply side" at the right time,aiming at achieving a higher level of supply and demand balance so as to truly realize China’s economy moving from high speed growth to high quality development."Three deletions,one reduction and one compensation" is still an important content to promote the supply side structural reform.In order to promote the major task of deleveraging and cost reduction,actively and steadily handle enterprise debt,and effectively prevent and resolve financial risks.Under the realistic background of national supply side structural reform,the research on enterprise financing behavior is undoubtedly of great practical significance.Strategy is not only the starting point of all enterprise activities,but also the soul and outline of enterprise development.The basic guidelines for management accounting(CK [2016] No.10)issued by the Ministry of Finance establishes the important position of strategy in the application of management accounting.The guidelines for the application of enterprise internal control(CAI Kuai [2010] No.11)suggests that enterprises should scientifically determine investment and financing objectives and plans according to their own development strategies,and emphasizes that enterprises need to pay attention to the risk that the development strategy is too radical,divorced from the actual ability or deviated from the main business,which may lead to excessive expansion and even business failure.Therefore,as the micro main body of supply side reform,its financing behavior is inseparable from strategy,which is bound to be affected by enterprise strategy.However,as the action guide of enterprise resource allocation,how does the established strategy and its changes affect its financing behavior? What is the impact mechanism? What factors affect the relationship between the two,these problems have more theoretical and practical significance in the new historical period.Based on the above background,focusing on the research entry point of this paper,and from the three aspects of financing behavior,namely financing structure,financing period and financing cost,this paper mainly investigates the financing effect of enterprise strategic differences according to the following three levels: first,investigate whether strategic differences affect enterprise financing behavior,which is the main test;Secondly,it examines the specific mechanism through which the above impact affects the financing behavior of enterprises(mechanism test);Thirdly,it examines the conditions under which the impact of strategic differences on financing behavior is established(heterogeneity test).Firstly,based on normative research methods,combined with classical financial and financial theories such as financial elasticity theory,trade-off theory,information asymmetry theory,agency theory and liquidity risk theory,and drawing lessons from the perceived risk theory in the field of psychology,this paper attempts to build a theoretical analysis framework of strategic differences affecting enterprise financing behavior(financing structure,financing period and financing cost),Logically,this paper expounds the mechanism and conditions of the influence of enterprise strategic differences on financing behavior;Then,based on the institutional background and its descriptive analysis,using the relevant data of A-share non-financial listed companies in Shanghai and Shenzhen from 2000 to 2017,using a variety of empirical test methods,this paper verifies the theoretical expectations and assumptions of this paper in the following three aspects,and draws the corresponding research conclusions:First,it studies the relationship between strategic differences and financing structure,the mechanism of the impact of strategic differences on financing structure,and the heterogeneous impact of financial development environment and asset specificity on the relationship between them.It is found that the difference of the company’s strategic positioning significantly affects its financing structure.With the increase of the degree of strategic difference,the company reduces its debt financing level,which means that the greater strategic difference will aggravate the company’s operating risk,make it aware of the importance of financial flexibility,and then reduce its debt financing level out of the consideration of weighing the financing cost and future income;The test of action mechanism shows that strategic difference reduces debt financing by improving the financial flexibility and debt financing of enterprises;The heterogeneity test found that the negative impact of strategic differences on enterprise financing structure is more significant in regions with relatively low financial development level and enterprises with strong asset specificity.Second,it studies the relationship between strategic differences and financing term,the mechanism of the impact of strategic differences on Financing term structure,and the heterogeneous impact of the nature of property rights and audit quality on the relationship between them.The study found that the company’s strategic differences significantly affect its financing period.The higher the degree of strategic differences,the longer the company’s financing period.This means that in order to deal with the liquidity risk caused by strategic differences,enterprises tend to borrow long-term debt and adopt a longer financing term structure;Mechanism test shows that strategic differences will trigger the company’s liquidity risk,and enterprises with high degree of strategic differences are more inclined to increase asset liquidity to deal with the liquidity risk brought by strategic differences.This shows that asset liquidity plays an important intermediary role;The heterogeneity test found that the positive impact of strategic differences on Financing maturity is more significant in non-state-owned enterprises and non four audited enterprises.Thirdly,it studies the relationship between strategic differences and financing costs,the mechanism of the impact of strategic differences on financing costs,and the heterogeneous impact of market competitive position and the degree of financial distress on the relationship between them.It is found that for enterprises that deviate from the industry strategy,their strategic differences significantly affect the financing cost.With the increase of the degree of strategic differences,the financing cost of the company is also increasing,which means that investors and creditors can identify the strategic differences and the resulting cash flow fluctuation risks and financing constraints,and require a higher risk compensation premium,Then it increases the financing cost of the company;The mechanism test shows that the enterprises with higher strategic differences have higher cash flow fluctuations and more obvious financing constraints,which further push up the financing cost;The heterogeneity test shows that the positive impact of strategic differences on financing is more significant in enterprises with low competitive position and high financial distress.The differentiated contribution or innovation of this paper is mainly reflected in the following three aspects:Firstly,based on the perspective of strategic positioning,this paper opens up a new direction for the research of enterprise financing behavior.Compared with the existing studies that focus on investigating the financing behavior of enterprises from the micro level such as enterprise characteristics,the meso level such as industry differences,and the macro level such as institutional background and policy changes,based on the perspective of strategic positioning and differences,this paper integrates the above factors into the company’s strategy and its adjustment,and then considers their impact effects,It provides a new direction for the research of corporate financing behavior and is a useful supplement to the existing literature.Secondly,based on the "overall" height of corporate strategy,this paper provides new theoretical and empirical evidence for the study of the economic consequences of strategic differences.Combined with classical financial theories such as financial elasticity theory,trade-off theory,information asymmetry theory,agency theory and liquidity risk theory,and inspired by psychological theories such as perceived risk,this paper comprehensively investigates the financial effects of corporate strategic differences from the three dimensions of financing behavior.In addition to the research from the perspectives of financial accounting,corporate finance,management accounting and audit,Standing on the "overall" height of the company’s strategy,it provides a new theoretical explanation and empirical evidence for the study of the economic consequences of its strategic differences.Finally,based on the perspective of impact mechanism,this paper makes a beneficial expansion for the research on the impact of strategic differences on financing behavior.From the three dimensions of financing structure,financing period and financing cost,namely,financing behavior,this paper provides theoretical and empirical evidence for simultaneous interpreting of the different transmission paths of strategic differences affecting corporate financing behavior,namely financial flexibility and debt financing costs,asset liquidity,financing constraints and cash flow.This is a beneficial expansion of the cross research on strategic differences and financing behavior.