Difference In Disclosure And Implementation Of Corporate Strategic Transformation And Investor's Response

Enterprise strategy is related to the survival and development of the enterprise.With the continuous introduction of national policies such as the "The Belt and Road" and "Supply-side Reforms",the market economy environment and enterprise operating environment have become more complicated.In order to adapt to changes in the economic environment and meet the demand for supply-side reform,it has become a general trend for enterprises to carry out strategic transformation to seek sustainable development.How to optimize corporate information disclosure on strategic transformation and improve the practical effectiveness of corporate strategic transformation has also become an important social issue.Scholars at home and abroad have carried out a lot of useful research on corporate strategic transformation,but the focus of their research is mostly based on the behavioral characteristics of strategic transformation,paying attention to its cognition and measurement,driving factors and economic consequences,and few related studies involving information disclosure on strategic transformation The literature that deeply explores the differences between the "words" and "deeds" of corporate strategic transformation is even rarer.Based on the above,this paper attempts to use corporate strategic transformation as an entry point,taking into account the "words" and "deeds" of corporate strategic transformation,incorporating strategic transformation information disclosure and strategic transformation practices into a unified framework.And separately explore how investors in the capital market will react to the "words","deeds" and "differences between words and deeds" of the corporate strategic transformation.The "words" of the corporate strategic transformation is usually reflected in the textual information disclosure of the future outlook section of "Management's Discussion and Analysis"(MD&A),which is a statement of the company's future development strategy,business plan and possible risks and is decisive for a company to make decisions about what kind of business to run.The change of strategic information means that the enterprise has to make business adjustments.The "deeds" of the corporate strategic transformation is mainly reflected in the changes in the business portfolio in practice.In other words,the "deeds" will be reflected in changes in the business revenue structure of the business segment.Statements and practices related to corporate strategic transformation are precisely the focus of information users in the capital market.This paper takes all A-share listed firms in China from 2007 to 2018 as a research sample and uses empirical analysis methods to study the impact of corporate strategic transformation information disclosure,strategic transformation implementation and the difference in strategic transformation disclosure and implementation on investor response respectively.The study in this paper has found that:(1)The disclosure of corporate strategic transformation information,the degree of implementation of strategic transformation,and the differences between the "words" and "deeds" of strategic transformation will cause negative reactions from investors respectively.These results are still valid after passing the robustness test.(2)The further research has also found that the negative correlation between corporate strategic transformation information disclosure and investor response is mainly reflected in the sample of non-state-owned firms,MD&A information disclosure regulations revised and low institutional shareholding ratio groups.The negative correlation between the degree of implementation of corporate strategic transformation and investor response is mainly reflected in the sample of state-owned enterprises,MD&A information disclosure regulations revised and high institutional shareholding ratio groups.The negative correlation between the difference in "words" and "deeds" of corporate strategic transformation and the investor response is reflected in the non-state-owned enterprises,MD&A information disclosure regulations before and after revision,and the high institutional shareholding ratio group.The conclusions of this paper provide a certain reference basis for companies to formulate suitable strategic transformation plans,conduct strategic transformation information disclosure and carry out strategic transformation practice.