Corporate Strategic Deviation,Environmental Uncertainty And Stock Price Crash Risk

In recent years,the frequently changing domestic and international economic situation has brought great impact to the capital market,and the stock price crash risk have occurred from time to time.The stock price crash risk has been a hot topic of concern for both the practical and academic communities.The Twenty Tenth Report has clearly put forward the important strategic task of building a high-level socialist market economy system.On the new journey to achieve a high-quality economic development pattern,it is urgent to improve and perfect the capital market regulatory system and prevent major financial risks.Therefore,it is important to study the factors influencing the stock price crash risk for realistic guidance.In order to be able to cope with the opportunities and challenges of economic transformation and upgrading,and to maintain a leading position in the increasingly fierce market competition,some enterprises will choose to develop strategies that differ significantly from the industry average,forming a degree of company strategic differentiation.On the one hand,a distinctive strategy will establish a competitive advantage for the company,while on the other hand,lurking behind it may be the operational risk arising from a failure in strategic positioning and the information risk arising from strategic differentiation,which may breed opportunistic management behaviour and have an impact on the stock price crash risk.At the same time,intricate economic policy changes and unpredictable stakeholder behaviour increase the uncertainty of the macro and micro environment faced by companies,could this pose a greater risk of stock price crash for companies that deviate from conventional industry strategies?Based on a compilation of domestic and international literature related to corporate strategy deviation,micro-environmental uncertainty,economic policy uncertainty and the stock price crash risk,this thesis selects data on China’s listed companies in Shanghai and Shenzhen A-shares from 2010 to 2020 to explore the relationship between corporate strategy deviation and the stock price crash risk,as well as the role of micro-environmental uncertainty faced by firms and economic policy uncertainties faced by firms in moderating the relationship between the corporate strategy deviation and the stock price crash risk.The findings of this thesis show that: firstly,the greater the extent to which firms deviate from industry conventional strategies,i.e.the greater the deviation in firm strategies,the higher risk of stock price crash;secondly,the uncertainty of the micro-environment and economic policies faced by firms exacerbates the positive relationship between the corporate strategy deviation and the stock price crash risk;thirdly,further research shows that deviation in firm strategies affect the stock price crash risk by influencing firm operational risk and information risk,and that the effect of the deviation in firm strategies on the stock price crash risk is more significant among non-state firms.In response to the findings of the study,this thesis mainly puts forward the following recommendations: first,in view of the risk of stock price collapse brought about by strategic deviation,enterprises should seek to avoid harm,formulate scientific and reasonable strategic decisions,effectively play the role of strategic deviation on resource allocation,and improve strategic information disclosure to provide adequate risk warnings;second,investors should screen the quality of financial information,combine information on strategic deviation and changes in the internal and external environment of enterprises Second,investors should screen the quality of financial information,combine information on strategic deviation and changes in the internal and external environment,comprehensively assess strategically different enterprises and reasonably optimize their investment strategies;third,regulators should not only break down operational barriers for strategically different enterprises to optimize their survival environment,but also improve the level of information disclosure before and after the introduction of policies,focus on the long-term stability of policy implementation,and also strengthen the supervision of information disclosure of strategically different enterprises to maintain good market order and escort the healthy development of the capital market.