The Empirical Study On Diversification Strategies And Corporate Governance

The strategy is very important to an enterprise. Diversification strategy is an important strategic mode of enterprise's development. Seen from current researches, there are more qualitative study on diversification in China and quantitative studies focus mainly on the relationship between enterprise diversification and performance. But there are few studies on the formulation of diversification strategy and its influential factors, the relationship between corporate governance and diversification for example. The research object of this dissertation is the listed corporation. The methods of correlation analysis and variance analysis are employed in this dissertation to study the relationship between corporate governance and diversification. In chapter one, the author discusses research meaning, research objective, main content, methods used in this dissertation and reviews existent literatures. At the same time, some basic conceptions are defined. In chapter two,it is raised that principal-agent theory is main theory in the research of corporate governance. In chapter three,the basis of diversification is expatiated. In chapter four, several main parties at stake in corporate governance are made as research objects to analyze the impacts of each party at stake on the formulation and the implement of diversification. In chapter five, On the basis of research hypothesis put forward on the relationship of corporate governance and diversification, the author do empirical study with the data collected from listed corporation. In chapter six, the author gives conclusions as follows:1. The concentration rate of stock has negative relationship with the degree and type of diversification. 2. The existence of high proportion non-circulation stock is disadvantageous to the decreasing of agent cost. The reason is that the managers will be inclined to take low related or unrelated diversification.3. The size of board of directors has positive relations with diversification degree and type. 4. Under the situation that one man holds both the position of general manager and the position of president of board of directors, the managers are inclined to take low related or unrelated diversification.5. Too low proportion of holding stock now in china cannot form effective incentive and restricting mechanisms. The managers will still take low related or unrelated diversification.Finally, some suggestions are put forward to improve corporate governance to enterprises' developing diversification more effectively according to the empirical study result...