| With the circumstance of fierce competition and the increase of labor costs etc.,strategic change has played more and more critical roles in firm's operation process.The concept of board capital expands the theory of the relationship between board and firm value creation.At the same time,strategic change is one of significant paths of firm value creation,the consequence of which ties board capital with strategic change closely.Although foreign scholars have studied the relationship between board capital and strategic in some literature,the conclusions may not be able to be applied to Chinese markets because of the differences of market economy process and institution between western countries and China.This passage contains two phases:(1)Through literature review and normative research,the research model is put forward;(2)Through the empirical research of CSI300 index companies,we analyze the relationship between board capital and strategic change as well as the moderating effect of CEO power and institution environment for the relationship above.Following results are concluded through the research process:(1)Greater board capital breadth leads to more strategic change;(2)Greater board capital depth leads to less strategic change;(3)CEO power moderates the linkage between board capital breadth and strategic change,such that under high CEO power,board capital breadth produces high strategic change;(4)Institution environment moderates the linkage between board capital breadth and strategic change,such that under better institution environment,board capital breadth produces high strategic change.The main innovations can be described as follows:First,this passage studies the relationship between board capital and strategic change in Chinese context.Second,the differences of CEO power moderating mechanism between western countries and China are discussed.Last but not least,we find that institution environment plays a certain moderating role between board capital and strategic change. |
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