The Diversification Of Manufacturing Listed Companies In China

With the progress of China's reform and the development of Marketing Economics, more and more multinational enterprises (MNEs) competed with Chinese enterprise in China and abroad. The operational power and the scale economic of MNEs suffered Chinese enterprises (CEs) survival crisis. In response to the crisis many CEs implemented diversification strategy to nature their strength, but mass of the failed.Therefore, the dissertation targets manufacturing companies of China, analyzes the financial index which could affect the diversification. We use the financial data of Chinese manufacturing companies which issued A share during the period from 2003 to 2004, analyze the financial characteristics of Chinese manufacturing companies, with the help of statistical method such as logit regression and the descriptive statistics.The dissertation can be divided into six main parts as follows:The first part is an introduction to the background and motivation of the study, research purposes, and so on.The second part is an overview of the literature, mainly focus on the definition and the measurement of diversification, and review the empirical literature of diversification. There are many methods to define the diversification, two of them are cross-sectional. They are two streams of research literature, industrial organization economic and strategic management. The first one dealt with SIC method. The last one used targets market, R&D, production and so on to measure the diversification of the companies. According to different definitions of diversification, there are many methods to classify and measure. In addition, the dissertation introduces some research of Amould (1969), Rumelt, Christensen& Montgomey (1981). In China, the research of diversification mainly contain with Li Liu (1997), Yisheng Yi (1999), Jiang Zhu (1999), and so on.The third part introduces the causations of the diversification. The dissertation analyses the causations for three aspects, they are the causation of the diversification, the feasibility of the diversification in China, and the boundary of the diversification choice in China. In the first part, we discuss the causation of the diversification in theory, basic reasons, and the special reasons for China. And in the theory part, we introduce the risk theory, the agency theory, and so on. In the second part, we analyze the feasibilities from four aspects. In the last part, we introduce a simple model to illustrate when the...