Empirical Research On Diversified Decision And Performance Evaluation Of Electric Company

Diversification is the inevitable problem to face, and also the key decisions which is full of risks and opportunities, and the important strategic turning point during the development process. In order to improve its efficiency and competitiveness, the electric company will get more space for the reorganization of assets through diversified development to integrate resources and scale during the special period when electricity demand in rapid growth and electricity reform in depth.Based on the theory of portfolio, we build a selection model of diversified industries. By choosing the portfolio which has the maximizing risk-adjusted growth, it can be an ideal decision adopted by the electric company. We build a performance evaluation system of the diversity. By inputting the sample data of listed companies of the electricity industry into the DEA model, we can get the relevant results of the overall effectiveness, technical efficiency and scale efficiency to evaluate and analyze their diversified performances and differences of listed companies. In this paper, the degree of diversification is expressed by "entropy" value and the diversification performance of listed power companies is expressed by the overall performance calculated by DEA model. Through the results of regression analysis between the degree of diversification and the diversification performance, we can study their relationship and its significant correlation. Based on effects caused by the development of diversification, the regression analysis is established between the diversity degree and specific diversification effects to seek whether there are significant relationships between them. These effects include economies of scale, transaction cost effects, effects of business risk, management synergies and financial synergies, and their performance is a concrete expression of diversity.By researching the diversification strategy in the selection decision problems and performance evaluation of diversity, this paper has important theoretical and practical significance on power companies to implement a diversified strategy.