Strategic Deviance And The Dynamic Adjustment Of Capital Structure

At present,the golden age of Chinese enterprises is going out.Investment and financing platform is expanding and economic and trade cooperation is flourishing.Among many key factors,strategic issues are at the forefront.Strategy refers to a series of conventions and actions taken by enterprises to develop core competitiveness and gain competitive advantage.As a key factor determining the success or failure of business activities,the implementation of strategy largely determines the competitiveness and sustainable development of enterprises.Appropriate strategy adoption is undoubtedly helpful for evergreen businesses.Based on the importance of strategic information,the Shenzhen Stock Exchange issued the guidelines for investor relations management of Listed Companies in Shenzhen stock exchange,and made specific guidance and guidance for non-financial information disclosure including strategic information.At the same time,the stakeholders are paying more and more attention to the strategic choice of the enterprise.From the birth,the growth to the mature development process,a set of regular strategic models will be formed on the basis of the success or failure of a large number of enterprises.However,some enterprises may choose to deviate from this conventional strategy in order to gain competitive advantage because of the change of system and technological innovation.The degree of strategic deviation indicates that the enterprise strategy deviates from the conventional strategy of the industry.Once enterprises deviate from the conventional strategy of the industry,that is,the formation of strategic differences will bring certain risks to the enterprises.And risk is an important factor affecting the financing cost of enterprises.The high cost of financing caused by the risk will lead to the adjustment cost rising,which may have some influence on the capital structure adjustment of enterprises.The research on capital structure is a very important research topic in the financial field of modern enterprises.The decision-making of capital structure is the core part of the daily financial decision of the company,and also the embodiment of the various financial activities of the company.The existing literature has studied the dynamic adjustment of capital structure in two aspects,including the external environment and the internal environment.However,little attention has been paid to the influence of the strategic difference on the adjustment of capital structure.Therefore,based on the 2003-2016 years data of A share listed companies in China,this paper explores the relationship between strategic differences and dynamic adjustment of capital structure based on risk entry.The first test of the impact of corporate strategy differences in the speed of capital structure adjustment,then in accordance with the nature of property rights group regression in order to study the influences of strategic differences and dynamic adjustment of capital structure between the last introducing mechanism to explore whether can weaken the strategic differences in adverse effects on the adjustment of capital structure of internal control.The main conclusions of this paper are as follows: first,strategic differences have a significant negative impact on the dynamic adjustment of capital structure.The higher the strategic difference is,the lower the dynamic adjustment speed is.Second,the nature of property rights also has a significant impact on the relationship between corporate strategic differences and capital structure adjustment.Compared with state-owned enterprises,the weakening of the strategic adjustment of capital structure is more obvious than that of state-owned enterprises.Third,this paper further examines the influence of internal control on the relationship between the strategic difference and the capital structure adjustment between the two.The results show that the high quality internal control system significantly weakens the negative impact of strategic differences on the adjustment of capital structure.The capital structure theory and financial theory in the field of strategic management field combined with the conclusion of this paper.This study should encourage investors to learn strategic knowledge,choose appropriate strategies,strengthen and improve internal control mechanisms and improve information disclosure system.