An Empirical Study On Corporate Governance And Diversification Strategy

The author bases on agent theory, analyses the annual reports of list companies, and chooses suitable methods and models to quantify each aspects of corporate governance structure and diversification, and by way of correlation analysis, partial correlation analysis, and variance analysis, and studies the realistic relationships between corporate governance and diversification. The author gets the main results as follows: 1. Proportion of the state-owned stock has negative relation with total diversification degree, but proportion of the corporate share hasn't significant relation with diversification; 2. The concentration rate of stock has negative relations with total diversification degree and unrelated diversification degree; 3. Except the independent director's proportion has significant negative relation with total diversification degree, scale of directory, inside director's proportion and outside director's proportion haven't significant relation with diversification degree; 4. Under the situation that one holds both the position of general manager and the position of president of board, the managers are inclined to take low unrelated diversification strategy. 5. The managers'shareholding ratio has positive relation with related diversification degree, and has negative relation with unrelated diversification. At last, on the basis of empirical study, the author gives some advice to improve corporate governance structure. Compared with similar research, the innovation of this dissertation lies in two aspects: On one hand, the putting forward of question, there is greater promotion on the breadth and depth of the question in this text; On the other hand, the thinking and method of study, the author compares and evaluates entropy measurement models, and improves the method of diversification empirical study.