How strategy changes in different monetary policy conditions: An empirical test in China

Chinese Management Studies

Volumn 9, Issue 3, 2015, Pages 355-384

  Yang, Yan ^a   Wang, Fengli ^a   Chen, Shou ^a  

^a HUNAN UNIVERSITY   (China)

Author keywords

External capital dependence; Industrial competition intensity; Monetary policy; Ownership identity; Strategic change

Indexed keywords

EID: 84943246884     PISSN: 1750614X     EISSN: None     Source Type: Journal    
DOI: 10.1108/CMS-01-2014-0015     Document Type: Article

References (45)

1. Ansoff, H.I. (1965), Corporate Strategy: An Analytic Approach to Business Policy for Growth and Expansion, McGraw-Hill, New York, NY, pp. 227-236.
2. Baglioni, A. (2007), "Monetary policy transmission under different banking structures: the role of capital and heterogeneity", International Review of Economics & Finance, Vol. 16 No. 1, pp. 78-100.
3. Barron, J.M. and Chulkov, D.V. (2011), "Top management team turnover, CEO succession type, and strategic change", Journal of Business Research, Vol. 64 No. 8, pp. 904-910.
4. Bernanke, B. and Gertler, M. (1989), "Agency costs, net worth, and business fluctuations", American Economic Review, Vol. 79 No. 1, pp. 14-31.
5. Bourgeois, L.J., III (1980), "Strategy and environment: a conceptual integration", The Academy of Management Review, Vol. 5 No. 1, pp. 25-39.
6. Boyle, G.W. and Guthrie, G.A. (2003), "Investment, uncertainty, and liquidity", Journal of Finance, Vol. 58 No. 5, pp. 2143-2166.
7. Brander, J. and Lewis, T. (1986), "Oligopoly and financial structure: the limited liability effect", American Economic Review, Vol. 76 No. 5, pp. 956-970.
8. Campello, M., Graham, J.R. and Harvey, C.R. (2010), "The real effects of financial constraints: evidence from a financial crisis", Journal of Financial Economics, Vol. 97 No. 3, pp. 470-487.
9. Cannon, N.J. (2014), "Determinants of 'sticky costs': an analysis of cost behavior using United States air transportation industry data", Accounting Review, Vol. 89 No. 5, pp. 1645-1672.
10. Carpenter, M.A. (2000), "The price of change: the role of CEO compensation in strategic variation and deviation from industry strategy norms", Journal of Management, Vol. 26 No. 6, pp. 1179-1198.
11. Carpenter, R.E., Fazzari, S.M. and Petersen, B.C. (1998), "Financing constraints and inventory investment: a comparative study with high-frequency panel data", Review of Economics and Statistics, Vol. 80 No. 4, pp. 513-519.
12. Chen, L.B. and Liu, F. (2013), "Bank supervision and discrimination: from the perspective of accounting conservatism", Accounting Research, No. 1, pp. 28-34.
13. Fang, J.X. (2007), "Ownership, institutional environment and capital allocation", Economic Research, No. 12, pp. 50-60.
14. Finkelstein, S. and Hambrick, D.C. (1990), "Top-management team tenure and organizational outcomes: the moderating role of managerial discretion", Administrative Science Quarterly, Vol. 35 No. 3, pp. 484-503.
15. Guimaraes, B. and Sheedy, K.D. (2011), "Sales and monetary policy", American Economic Review, Vol. 101 No. 1, pp. 844-877.
16. Himmelberg, C.P. and Petersen, B.C. (1994), "R&D and internal finance: a panel study of small firms in high-tech industries", Review of Economics and Statistics, Vol. 76 No. 1, pp. 38-51.
17. Hirsch, J. (2011), "Financing decisions along a firm's life-cycle: debt as a commitment device", European Financial Management, Vol. 17 No. 5, pp. 898-927.
18. Hoskisson, R.E. and Hitt, M.A. (1988), "Strategic control systems and relative R&D investment in large multiproduct firms", Strategic Management Journal, Vol. 9 No. 6, pp. 605-621.
19. Hu, C.X. (1999), "Leverage, monetary policy, and firm investment", Economic Review, Vol. 2 No. 2, pp. 32-39.
20. Hubbard, R.G. (1998), "Capital-market imperfections and investment", Journal of Economic Literature, Vol. 36 No. 1, pp. 193-225.
21. Kashyap, A.K., Stein, J.C. and Wilcox, D.W. (1993), "Monetary policy and credit conditions: evidence from the composition of external finance", American Economic Review, Vol. 83 No. 1, pp. 78-98.
22. Kochhar, R. and Hitt, M.A. (1998), "Linking corporate strategy to capital structure: diversification strategy, type and source of financing", Strategic Management Journal, Vol. 19 No. 6, pp. 601-610.
23. Korajczyk, R.A. and Levy, A. (2003), "Capital structure choice: macroeconomic conditions and financial constraints", Journal of Financial Economics, Vol. 68 No. 1, pp. 75-109.
24. Lamberg, J., Tikkanen, H., Nokelainen, T. and Suur-Inkeroinen, H. (2009), "Competitive dynamics, strategic consistency, and organizational survival", Strategic Management Journal, Vol. 30 No. 1, pp. 45-60.
25. Lawrence, P.D. and Lorsch, J.W. (1967), "Organizations and environments", Division of Research, Graduate School of Business Administration, Harvard University, Boston, MA.
26. Levinthal, D.A. and Wu, B. (2010), "Opportunity costs and non-scale free capabilities: profit maximization, corporate Scope, and profit margin", Strategic Management Journal, Vol. 31 No. 7, pp. 780-801.
27. Li, B. (2004), "Economic development, structure change and 'missing money'", Economic Research, Vol. 6 No. 1, pp. 24-32.
28. Maksimovic, V. and Phillips, G. (2008), "The industry life cycle, acquisitions and investment: does firm organization matter?", Journal of Finance, Vol. 63 No. 2, pp. 673-708.
29. Matsa, D.A. (2013), "Capital structure as a strategic variable: evidence from collective bargaining", Journal of Finance, Vol. 65, No. 3, pp. 1197-1232.
30. Mojon, B., Smets, F. and Vermeulen, P. (2002), "Investment and monetary policy in the Euro area", Journal of Banking and Finance, Vol. 26 No. 11, pp. 2111-2129.
31. Naranjo-Gil, D., Hartmann, F. and Maas, V.S. (2008), "Top management team heterogeneity, strategic change and operational performance", British Journal of Management, Vol. 19 No. 3, pp. 222-234.
32. Nickerson, J.A. and Silverman, B.S. (2003), "Why firms want to organize efficiently and keeps them from doing so: inappropriate Governance, performance, and adaptation in a deregulated industry", Administrative Science Quarterly, Vol. 48 No. 3, pp. 433-465.
33. O'Brien, J.P. (2003), "The capital structure implication of pursuing a strategy of innovation", Strategic Management Journal, Vol. 24 No. 5, pp. 415-431.
34. O'Brien, J.P., David, P., Yoshikawa, T. and Delios, A. (2014), "How capital structure influences diversification performance: a transaction cost perspective", Strategic Management Journal, Vol. 35 No. 7, pp. 1013-1031.
35. Rumelt, R. (1974), Strategy, Structure and Economic Performance, Harvard University Press, Boston, MA.
36. Sanders, W.G. and Carpenter, M.A. (1998), "Internationalization and firm governance: the role of CEO compensation, top team composition, and board structure", Academy of Management Journal, Vol. 41 No. 2, pp. 158-178.
37. Semmler, W. and Zhang, W.L. (2007), "Asset price volatility and monetary policy rules: a dynamic model and empirical evidence", Economic Modelling, Vol. 24 No. 3, pp. 411-430.
38. Sun, Z., Liu, F.W. and Li, Z.Q. (2005), "Market development, government influence and corporate debt maturity structure", Economic Research, No. 5, pp. 52-63.
39. Voutsinas, K. and Werner, R.A. (2011), "Credit supply and corporate capital structure: evidence from Japan". International Review of Financial Analysis, Vol. 20 No. 5, pp. 320-334.
40. Wiersema, M.F. and Bantel, K.A. (1993), "Top management team turnover as an adaptation mechanism: the role of the environment", Strategic Management Journal, Vol. 14 No. 7, pp. 485-504.
41. Williamson, O.E. (1985), Economic Institutions of Capitalism, Free Press, New York, NY.
42. Wu, B. (2013), "Opportunity costs, industry dynamics, and corporate diversification: evidence from the cardiovascular medical device industry, 1976-2004", Strategic Management Journal, Vol. 34 No. 11, pp. 1265-1287.
43. Zajac, E.J. and Shortell, S.M. (1989), "Changing generic strategies: likelihood, direction, and performance implications", Strategic Management Journal, Vol. 10 No. 5, pp. 413-430.
44. Zhang, Y. (2006), "The presence of a separate COO/president and its impact on strategic change and CEO dismissal", Strategic Management Journal, Vol. 27 No. 3, pp. 283-300.
45. Zhang, Y. and Rajagopalan, N. (2010), "Once an outsider, always an outsider? CEO origin, strategic change, and firm performance", Strategic Management Journal, Vol. 31 No. 3, pp. 334-346.