Listed Conglomerate Diversification And Performance Relationship Research

The history of enterprise groups in developed countries indicated that diversification was one of the most important ways for enterprise groups to grow continuously. In 1970's foreign enterprise groups survived and developed well with diversification, but some of them, in 1980's, gave up diversification strategy and shifted to specialization. In China, however, it is different. A good number of Chinese enterprise groups have been actively starting to adopt diversification since they were built up as the development of market-oriented economy.Then come some very significant questions. Why some enterprises selected diversification? What effect can diversification bring about? Why some foreign enterprise groups abandoned diversification? Why some Chinese enterprise groups have zeal for diversification? Any new development to both sides in this case? What kind of relations between enterprise groups' performance and diversification? Anything significant from the comparison? What kind of road should Chinese enterprise groups choose?The dissertation studied those questions in the following structure.The chapter I analyzed various theories in diversification. The chapter II designed the framework for the positive study. From the comparison, the chapter III studied, in a mathematical and statistical way, the relations between enterprise groups' performance and diversification. The chapter IV discussed what kind of road Chinese enterprises groups should choose to compete with foreign opponents.After deeply theoretical study and mathematical analysis, some policy proposals were put forward that Chinese enterprise groups enter on way of diversification based on build-up of core competitiveness and on full development of business related to the core ones.The highlights of the dissertation lied in the following points.The dissertation studied the relations between enterprise groups' performance and diversification from international comparison in a mathematical and statistical method, and few similar dissertations have been seen from this angle. It is of great significance when Chinese enterprise groups are in the crucial process of development.