Abstract
AbstractGuided 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.
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