Empirical Research On Internal Control,Industry Characteristics And Corporate Strategic Differences

Corporate strategy is a summary of various strategies of a company,which is usually divided into three levels: general strategy,business unit strategy or competitive strategy and optional strategy.Corporate strategic difference refers to the degree to which the strategy chosen by an enterprise deviates from the conventional strategy of the industry.At present,there are a lot of researches on strategic differences in the academic community,and many valuable achievements have been made,but there are still many gaps that need to be supplemented.From this point of view,there are the following manifestations: the ultimate purpose of internal control system is to ensure that enterprises achieve their own development strategy,so does the system have an impact on the degree of corporate strategic differences? Different industries will form conventional strategies with industry characteristics,so what kind of regulatory role does industry characteristics play in the impact of internal control on strategic differences? An in-depth and comprehensive understanding of these issues is conducive to enriching the theory of strategic management and internal control,and it is of great guiding significance for enterprises to improve the construction of internal control,pay attention to the characteristics of the industry and monitor strategic risks.This paper is devoted to exploring the relationship between the company’s strategic differences and internal control,as well as the regulatory effect of industry characteristics on the above relationship.Based on the financial data of A-share listed companies in Shanghai and Shenzhen stock markets from 2009 to 2018,this paper first studies the relationship between internal control and strategic differences,then studies the regulatory role of industry characteristics in the above-mentioned relationship,and finally further studies the regulatory role of property rights Using the relationship between internal control and the single dimension of strategic differences,the following conclusions are drawn.Firstly,high-quality internal control can significantly inhibit the choice of strategic differences.The higher the quality of internal control,the easier the company is to choose a less differentiated strategy.Secondly,different perspectives of industry characteristics can significantly adjust the relationship between internal control and corporate strategic differences.The degree of industry regulation and industrial asset structure(proportion of tangible assets)will increase the inhibition of internal control on the choice of corporate strategic differences,while the prospect of industry development will increase and weaken the inhibition of internal control on the choice of corporate strategic differences.Thirdly,the inhibition of internal control on corporate strategic differences is more obvious in non-state-owned enterprises,and the inhibition of internal control is different in different dimensions of strategic differences,and the inhibition of internal control on the difference of management cost investment is the most obvious.The innovation points of this paper are as follows: Firstly,from the perspective of strategic management,study the impact of internal control on strategic differences,and link the purpose and means of internal control.At this stage,few studies are involved.In-depth discussion on the influencing factors of strategic timing by management provides a theoretical basis for future strategic selection by management.Secondly,further explore the level of industry characteristics and find that the relationship between internal control and strategic differences is deeply affected by industry characteristics.Expanding the research of strategic differences from the perspective of different industry characteristics is conducive to improving the sensitivity of management to industry characteristics and providing empirical evidence for corporate governance.