Business strategy and systematic risk: Evidence from China

Authors

Md Jahidur Rahman, Wenzhou-Kean University
Lantian Jia, Stevens Institute of Technology
Rakiba Sultana, Wenzhou-Kean University

Document Type

Article

Publication Date

10-1-2021

Abstract

Guided by their business strategies, firms develop their competitive advantages and overcome systematic risks by allocating their limited resources. This study explores how advertising, labor, R&D, cost, and capital intensities are correlated with the systematic risks of 10 industries in the Chinese market. The results show that these correlations vary between industries. To easily adapt to market variations and reduce systematic risks, decision-makers are advised to design their business strategies according to the characteristics of their respective industries.

Publication Title

Journal of Corporate Accounting and Finance

First Page Number

99

Last Page Number

117

DOI

10.1002/jcaf.22514

Recommended Citation

Rahman, Md Jahidur; Jia, Lantian; and Sultana, Rakiba, "Business strategy and systematic risk: Evidence from China" (2021). Kean Publications. 892.
https://digitalcommons.kean.edu/keanpublications/892