Deviant Strategy?Internal Control Quality And Volatility Of Company Performance

At present,China's economic development has shifted from high-speed development to high-quality development stage.Transforming development mode,optimizing economic structure,transforming growth momentum,and building a modern economic system are the strategic goals of China's current development.As one of the micro-mains of economic development,to cope with the challenges and opportunities of economic transformation.In order to compete in an invincible market environment,some enterprises will seize the competitive advantage.In the process of strategic decision-making,they will find the unique development advantages of enterprises and formulate development models that deviate from the conventional strategy of the industry,thus forming a strategic difference between enterprises.The existing literature on the company's strategic and deviant Strategy,mainly focused on a variety of strategic comparison research and selection of influencing factors,the company's strategic differences will lead to economic impact has little research,some scholars have drawn research that deviant strategy will bring uncertainty to the business to a certain extent,resulting in extreme performance,but the performance level of the enterprise mainly reflects the business level and management ability of the enterprise through the financial statement data.The enterprise chooses the unconventional strategy to bring The uncertain risks are hard to reflect.Volatility of company performance is compared with the average performance level of the industry,which dynamically reflects the long-term development of the enterprise and the potential risks of the business operation.Compared with the performance level of the enterprise,it can better reflect the economic impact brought by the strategic difference.Therefore,this paper studies deviant strategy and volatility of company performance.According to China's "Basic Standards for Internal Control of Enterprises",internal control plays an important role in controlling strategic change costs and risks,ensuring strategic execution,and achieving strategic goals.Then,whether internal control will be adjusted in deviant strategy and volatility of company performance.The role of controlling adverse effects is another focus of this paper.Therefore,this paper takes the deviant strategy as the research entry point,based on the analysis of the company's strategic choice theory,bounded rational decision theory,high-order theory,risk-return theory,determines the mechanism of actionbetween the research objects,and draws on the existing research to fluctuate the company's performance.Divided into vertical performance fluctuations and horizontal performance fluctuations,the research hypothesis of this paper is proposed.The2013-2017 data of China's A-share listed companies were selected,and multiple regression models were constructed based on research hypotheses.The relationship between strategic differences and horizontal performance fluctuations and vertical performance fluctuations and the internal control quality were adjusted.Through research and analysis,the paper draws the following conclusions:(1)There is a positive correlation between deviant strategy and vertical performance fluctuations and horizontal performance fluctuations.(2)Internal control can effectively restrain the adverse effects of deviant strategy on horizontal performance fluctuations and vertical performance volatility,that is,internal control has a regulatory effect on deviant strategy and corporate performance fluctuations.Through the study of deviant strategy,internal control quality and corporate performance volatility,the scope of research on the economic consequences of corporate deviant strategy has been broadened,and it is no longer limited to the study of performance levels,but to take into account corporate risks.At the same time,it expands the scope of internal control,that is,internal control has a control effect on corporate strategic decision-making.Based on the above research conclusions,enterprises should be aware of the two-sidedness nature of choosing deviant strategy,choose appropriate strategies according to their own industries,and strengthen internal control system construction,sneak internal control into all aspects of strategic management and improve strategic control.Enable companies to choose a better strategy.