Business strategy and strategic deviation in accounting, finance, and corporate governance: A review of the empirical literature
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Date
2024-03-21
Open Access Location
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
John Wiley and Sons Australia, Ltd on behalf of Accounting and Finance Association of Australia and New Zealand
Rights
(c) 2023 The Author/s
CC BY-NC-ND 4.0
CC BY-NC-ND 4.0
Abstract
We review the empirical archival literature on the consequences of business strategy and strategic deviation on accounting, finance, and corporate governance outcomes. We use Miles and Snow's (Organizational strategy, structure, and process. McGraw-Hill, 1978; Organizational strategy, structure and process. Stanford University Press, 2003) strategy typology that has been quantified using financial statement data by Bentley et al. (Contemporary Accounting Research, 2013, 30, 780). Research has used this strategy score to investigate the consequences of firms following two distinct strategies namely, prospectors versus defenders, on various organisational outcomes. Our survey provides mixed evidence on the relationship between business strategy, financial reporting quality, finance outcomes, and corporate governance including corporate social responsibility (CSR) activities. We offer some suggestions for future research.
Description
Keywords
Business strategy, Financial reporting quality, Strategic deviation
Citation
Habib A, Ranasinghe D, Perera A. (2024). Business strategy and strategic deviation in accounting, finance, and corporate governance: A review of the empirical literature. Accounting and Finance. 64. 1. (pp. 129-159).