Asia-Pacific Journal of Business (아태비즈니스연구)

KNU The Institute of Management & Economy Research (강원대학교 경영경제연구소)
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Strategic Deviance, Cost Behavior and Firm Value

전략적 일탈 기업의 원가행태와 기업가치

  • Soon-hong Park (School of Business, Chungnam National University)
  • 박순홍 (충남대학교 경영학부)
  • Received : 2024.08.30
  • Accepted : 2024.09.25
  • Published : 2024.09.30
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Abstract

Purpose - The purpose of this study was to examine the effects of corporate strategic deviance on firm value considering a firm's cost stickiness. Design/methodology/approach - This study used 40,823 firm-year observations from the Korean stock markets, KOSPI and KOSDAQ. Several multiple regression models were used in order to analyze the data Findings - First, unlike the previous results, corporate strategic deviation is positively associated with firm value. Second, the cost stickiness of a firm is positively related to firm value. Third, the interaction effect between strategic deviation and cost stickiness has negative relation with firm value. Fourth, An increase in standard deviation directly correlates with a decrease in firm value for firms with high levels of controlling shareholder ownership or that are part of chaebols. Research implications or Originality - Strategically deviant firms can experience an increase in firm value due to their future competitive advantage. Moreover, stickiness of costs generally has a positive impact on firm value. However, when firms with high levels of cost stickiness employ strategic deviant strategies, there is a risk of agency problems such as excessive overinvestment, which can negatively impact firm value.

Keywords

Acknowledgement

이 연구는 충남대학교(교육·연구 및 학생지도비)에 의해 지원되었음(2024년).

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