The Impact Of Corporate Strategic Deviation On Corporate Violations

In the era of rapid economic and social transformation and increasingly fierce market competition,whether an enterprise can adapt to complex environmental changes is an important issue that affects the company's stability and sustainable development.In order to retain and enhance their unique resource advantages and competitive advantages in a constantly changing environment,listed companies often choose to deviate from the mainstream strategic trends of the industry,resulting in strategic differences.In order to adapt to the challenges brought about by the changes in the environment,the enterprise may choose a differentiated strategy while increasing the degree of information asymmetry,causing operational risks,and causing defects in the internal control of the enterprise,thereby affecting the company's violations.In addition,with the rapid development of my country's economy and society,new challenges are constantly being put forward to the original system and norms.Under this realistic background,repeated corporate violations have put a severe test on the effective operation of the market,and violations of listed companies have become the object of widespread concern by investors and major news media.Frequent violations of laws and regulations by listed companies disrupt the order of the capital market,aggravate the volatility of the capital market,and damage the interests of investors.Not only that,but also have a huge impact on the normal and orderly development of the securities market,resulting in impeded smooth flow of funds,making Increased capital market volatility poses a huge threat to the healthy development of China's capital market.Therefore,from the perspective of corporate strategic differences,this article studies its impact on corporate violations and provides a theoretical basis for protecting the legitimate rights and interests of market participants,regulating corporate behavior,and promoting the healthy operation of the market.Based on the current situation of my country's securities market,this article uses all the A-share listed companies in my country from 2006 to 2017 as the research sample,followed the existing literature,and after clearing the data to a certain extent,finally obtained 22,987 samples.Using the degree of strategic difference as the explanatory variable,the tendency of violations and the number of violations as the explanatory variables,and using the OLogit and Probit regression models to empirically test the relationship between strategic differences and violations of the company,and discuss the nature of the company and the gap between the company's performance expectations The regulatory role of the relationship between the two,and further analyzed the mechanism of corporate strategic differences affecting its violations.Finally,the empirical results are tested for robustness by replacing the measurement of strategic differences and corporate violations and endogenous testing.The results of the study show that:(1)Differences in corporate strategy exacerbate the tendency of corporate violations and worsen corporate violations.Compared with companies that follow mainstream industry strategic trends,companies with large strategic differences have greater tendency to violate regulations and more violations.(2)This article further examines the different nature of corporate property rights and the different impacts of corporate strategic differences on corporate violations when they face performance expectations surpluses and deficits,and finds that the positive correlation between corporate strategic differences and corporate violations is in Africa.The deficit of state-owned enterprises and performance expectations was strengthened.(3)This article further discusses the role of corporate information environment,business risk and internal control in the path of corporate strategic differences to corporate violations.It was found that companies with larger strategic differences had more opaque information environments,greater future business risks,and poorer internal control quality,which exacerbated the self-interested behavior of managers,leading to greater tendency and violations more serious.This article examines its impact on corporate irregularities from the perspective of corporate strategic differences.On the one hand,it enriches the research on the influencing factors of corporate irregularities,and has important reference significance for regulating corporate irregularities and promoting the healthy development of the market economy;on the other hand,expanding It has introduced the economic consequences of the implementation of the differentiation strategy of the enterprise,enriched the relevant literature of the enterprise differentiation strategy,and provided theoretical and empirical guidance for the adverse consequences that the enterprise may implement when implementing the differentiation strategy.The enterprise should weigh when implementing the differentiation strategy The pros and cons that may be brought about.Blindly pursuing such "innovation" may bring serious economic consequences,but it is not conducive to companies to cope with the increasingly fierce competition environment and severe survival challenges..