Strategic deviation and investment inefficiency
AUSTRALIAN JOURNAL OF MANAGEMENT(2023)
摘要
We examine the association between strategic deviation and investment inefficiency. We conceptualize strategic deviation as the extent to which the pattern of a firm's resource allocation deviates from its industry peers. We posit that firms pursuing deviant strategies are prone to increased information asymmetry and hence, are able to engage in self-serving behaviour as manifested in inefficient investments. Our results suggest that deviant firms have sub-optimal investments. A battery of robustness tests validates our findings. We further provide evidence to suggest that weaker monitoring, high product market competition and a low-quality information environment moderate the relation between strategic deviation and investment inefficiency. JEL Classification: M41, G41
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关键词
Information asymmetry,investments,product market competition,strategic deviation
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