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http://dx.doi.org/10.15207/JKCS.2022.13.04.397

Effect of Strategic Deviation on Corporate Value, Future Performance and Performance Persistence  

Park, Won (School of Business Administration, Kyungnam University)
Publication Information
Journal of the Korea Convergence Society / v.13, no.4, 2022 , pp. 397-407 More about this Journal
Abstract
This study examines the effect of deviant strategies on corporate value and future performance by departing from the same strategy as other firms in the same industry. Business strategy affects the development and growth potential of a firm and becomes an important factor in determining future performance and corporate value. Business strategies differ according to industrial characteristics, and a firm that implements a heterogeneous strategy within the same industry may have different future performance or corporate value compared to other firms. This study analyzed listed firms from 2011 to 2019 in order to verify the effect of strategic deviation on the relationship between future performance or corporate value. The analysis results are as follows. First, strategic deviation was found to have a positive (+) effect on corporate value, but it was found to have a negative (-) effect on future performance and also affect the persistence of performance. These results are meaningful in examining the effect of strategic deviation on corporate value or future performance and performance persistence by classifying strategies in prior studies and expanding the results that the type of strategy affects corporate value and future performance.
Keywords
Strategic Deviation; Corporate Value; Future Performance; Performance Persistence; Business Strategy; Industry;
Citations & Related Records
Times Cited By KSCI : 1  (Citation Analysis)
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