Research On The Influence Of Strategic Deviance On The Enterprise Credit Rating

In recent years,with the development of the bond market,varieties of bond are constantly innovating.These new varieties of bond not only provide assistance for the transformation of real economy,but also provide new financing mode for the market,and also broaden the financing channels for enterprises.The credit rating before the issue is necessary for the enterprise to enter the bond market.Different grades of credit rating determine the different financing costs of the enterprise.To improve the credit level of the enterprise and reduce the cost of financing has always been the concern of the enterprise.In addition,researches on the economic consequences of strategic deviance are becoming more and more abundant.And previous studies have shown that when strategy deviates from the average level of industry,business risk and information asymmetry will increase.Further,rating agencies will be influenced by the business risk and information asymmetry,which will underestimate the credit rating of enterprises to a certain extent.In the study of corporate credit rating's influencing factors,there is no research from the perspective of corporate strategic differences.Based on the transmission mechanism of enterprise business risk and information asymmetry,this paper analyzes the influence of strategic deviance on credit rating and the moderating role of CFO financial executive ability,by using the A-share listed and non-financial companies which issued enterprise bonds and corporate bonds as research sample.Further it explores the impact of economic cycles,industry competition and audit quality on the above relationship.We find that:(1)There is a significant negative correlation between strategic deviance and corporate credit rating.Bigger strategic deviance is,lower corporate credit rating is.(2)The improvement of CFO's financial executive ability can alleviate the negative influence of strategic deviance on credit rating.(3)The above relationship can be established significantly only when the economy is in contraction period,the enterprise is in a high competitive environment and When enterprises are non-state-owned enterprises.The conclusions of this study deepen our understanding of the strategic economic consequences,and also expand the research of the impact of enterprise credit rating factors,and at the same time,it provides empirical support for the implementation of CFO financial execution in corporate governance.