Research On The Influence Of Strategic Deviance On Corporate Environmental Protection Investment

The economy of our country has grown rapidly in recent years,but the extensive growth mode has seriously damaged the ecological environment of China,and the situation of pollution control and environmental protection has become increasingly severe.At present,the government pays attention to environmental problem,and green and low-carbon development has become the main theme of social development.Research shows that more than 80%of China’s environmental problems are attributed to the operation activities of enterprises,especially manufacturing enterprises.In the context of increasing attention to environmental governance,according to the principle of "polluter governance",it is a general trend for manufacturing enterprises to increase environmental investment.The existing research on the influencing factors of environmental protection investment mainly focuses on the external environment,the characteristics of senior executives and governance structure.There is few literature to examine the relationship between corporate strategy and environmental protection investment.Therefore,this paper discusses the impact on corporate environmental investment in terms of strategic deviance.As a "compass" for the survival and development of an enterprise,strategy will affect various investment decisions of the enterprise.With the increasingly intense market competition,more and more enterprises choose to deviate from the conventional strategic model of the industry in order to pursue the differentiated competitive advantage,which leads to the strategic deviance of enterprises.In that case,different levels of strategic deviance are bound to have different impacts on corporate environmental protection investment decisions.Enterprises with large strategic deviance face higher operational risks,and the information asymmetry is much worse,which may increase the external financing costs of enterprises,induce the environmental opportunism behavior of executives,and thus weaken the ability and willingness of enterprises to invest in environmental protection.However,enterprises with large strategic deviance are more likely to be questioned by stakeholders.At this time,enterprises are more motivated to pass on good operating signals to the outside world through environmental protection investment,improve corporate reputation,ease relations with the government,and obtain more support.Therefore,the relationship between strategic deviance and corporate environmental protection investment needs to be verified.Based on this,this paper uses A-share manufacturing listed enterprises of our country from 2012 to 2021 as samples,and on the basis of information asymmetry,signal transmission and other theories,makes a competitive hypothesis on the relationship between strategic deviance and corporate environmental protection investment,and uses correlation test,multiple regression and other analysis methods to examine the effect of strategic deviance on corporate environmental protection investment.At the same time,considering that the implementation of corporate strategy relies on the external and internal concrete governance atmosphere,this article also studies whether internal control and external environmental regulation have a regulatory effect on the relationship between the two.In the further analysis,the intermediary effect test is used to verify the mechanism between the strategic deviance and the relationship between corporate environmental protection investment.The results show that:(1)Strategic deviance will inhibit environmental investment of enterprises,which verifies the inhibition effect hypothesis.(2)The internal control and the environmental regulation of external governance mechanisms can both weaken the inhibitory effect of strategic deviance on corporate environmental protection investment.(3)Further analysis shows that financing constraints and agency costs play mediating mechanism in the influence of strategic deviance on corporate environmental protecion investment decisions.The innovation points of this essay lie in:First,the index of inventory dimension is added to construct the comprehensive index which is more suitable to measure the strategic difference of manufacturing enterprises;Secondly,from the overall strategic perspective,this paper explores the relationship between strategic deviance and environmental protection investment,and clarifies the mechanism of strategic deviance on environmental protection investment,so as to broaden the thinking for mining the deep-seated internal factors affecting corporate environmental protection investment decisions;Third,the moderating effects of the quality of internal control and the intensity of environmental regulation on the relationship between them are verified,and the related literature about the impact of governance environment on the relationship between strategic deviance and environmental protection investment is enriched.