The Empirical Research On The Diversification Of The Small And Medium-sized Enterprises To Growth

This essay researches the small and medium-sized listed companies in China. By studying their diversification and the effects of the relationship between diversification and growth, we can provide the reference for our small and medium-sized enterprises. The definition of the small and medium-sized enterprises is based on the division standard at home and abroad.This essay firstly reviewed literature on the growth theory of the small and medium-sized companies, the diversification theory and the relationship between diversification and growth. Secondly, by principal component analysis and factor analysis to evaluate the growth and give them growth score, we choose profit ability, expansion ability, operation ability and cash flow growth capacity to measure enterprise growth. Third, we select the small and medium-sized listed companies before 2007 as sample, there are 157 companies meet our requirements, we will use Specialization Rate (SR) and Herfindahl Hirschmann Index (HHI) to measure the diversification of the companies.In the empirical analysis part, by using descriptive statistics analysis and regression analysis and other kinds of measurement method, we have compared the influence of the different degrees of diversification to this small and medium-sized enterprise's growth. In addition, we have studied the influence of related diversification and unrelated diversification to small and medium enterprise's growth. We can conclude that, Firstly, there is obvious negative correlation between the degree of diversification and corporate economic performance; Secondly, the related diversification and enterprise growth is negative correlation, but related to diversification and specialization enterprise growth of impact is uncertain. This and people experience conform to, in a related diversification in the adults, because associated business, promote the formation of scale effect, and better development of enterprise; Thirdly, the significance coefficient of the asset scale is negative, it means the higher the asset scale of the enterprise, the greater the growth will be declined. It because of in the initial stage the small and medium-sized enterprises often show very high growth。...