Research On Corporate Governance,diversification,and Corporate Performanceof China’s Listed Real Estate Companies

Corporate governance structure and diversification have been hotspots in the research field of management science.In order to improve the corporate performance,more and more listed real estate companies pay attention to adjust the corporate governance structure or implement diversification development strategy.Under this background,the research on company governance structure and diversification problems can provide the basis for the listed real estate companies to improve internal governance mechanism,develop the company transformation upgrade strategy.The topic has important significance both theoretically and practically.Based on existing research and practical issues,aiming at the characteristics of the listed real estate companies,the dissertation constructs the theoretical analysis framework for “corporate governance structure-diversification-corporate performance”.Based on the respective investigations and empiricalstudies on the relationship of “corporate governance structure-corporate performance” and “diversification-corporate performance”from the microscopic,comprehensive and the endogenous perspectives,this dissertation carries out positive study with structural equation model and the data of listed real estate companies from 2007-2014,and then put forward application suggestions.The main conclusions of this dissertation include:(1)In the relationship of the corporate governance structure and corporate performance for the listed real estate companies,ownership structure,board governance,and executive incentive have significant correlations withcorporate performance;favourable corporate governance structure has significant premium effect on the corporate performance.With the considerations of endogenous effect of the corporate governance structure,the corporate governance has more significant premium effect on the corporate performance.(2)The various types of diversification have different degrees of discount effect on corporate performance.Among them,the type of regional diversification has the minimum discount effect,while the type of industry diversification has the maximum discount effect;the higher multi-diversification has more significant discount effect on corporate performance;under the control of the endogenous diversification effect,diversification has more obvious discount effect on the corporate governance.(3)In the relationship between the corporate governance structure,diversification and corporate performance of the listed real estate companies,diversification has a mediation effect on the corporate governance structure and corporate performance.However,compared with the direct effect,mediation effect is not very significant.In order to enhance the corporate performance of the listed real estate companies,this dissertation suggests:(1)Optimizing the corporate governance structure of the listed real estate companies.The detailed measures include thatthe promoting state-owned listed real estate companies to the equity privatization reform,appropriatly increasing ownership concentration with ownership forces of the listed real estate companies,maintaining the existed board of directors scale,appropriately increasing the proportion of independent directors and the meeting of the board of directors/the board of supervisors,increasing executive incentives from the salary and shareholding ration.(2)Considering that the diversification has the discount effect on corporate performance,the listed real estate companies should choose the diversification development strategy carefully.If the companies insist on the choice of diversification transformation scheme,it is recommended to follow the orderly path of regional diversification-product diversification-industry diversification step to step in order to minimize the negative impacts of diversification on corporate performance.(3)Combined with the macro economy and the development of real estate industry characteristics,the listed real estate companies should comprehensively consider the governance structure and diversification strategy.In the meantime of optimizing corporate governance structure,to formulate the rational transformation upgrade program,so as to strengthen the improvement efforts on corporate performance.