The Research On The Relation Of The Dersification Of Chinese Listed Company And Their Value

Diversification is an enterprise's significant strategic decision, which related with the investor, the creditor, the superintendent and other stakeholder's vital interest. Diversification has the very important influence to enterprise's market value and future development. Since our stock market's establishment, property reorganization has emerged one after another incessantly, and the listed company has been involved into the diversification repeatedly. Although does not lack the upper dog, but the listed company who blindly carries on diversification has created the enterprise achievement landslide, even felled into borders on bankrupt are not rare. Must point out, the investor, the company's management and the supervising authority of our country do not understand how the diversification influence the listed company's market value. This causes the related research appears day by day importantly.Foreign scholars' research about the diversification's influence to the enterprise value has developed to a quite mature stage. They had obtained some very important theoretic and practical achievement, and established some quite perfect research technique and the mentality. But in our country, although the scholars have carried on many explorations to the diversification, but many research are from angle of enterprise strategy management. Only quite few research used the foreign scholars' advanced method to performs the quantitative analysis from the angle of enterprise value and the diversification. Therefore, this article takes the listed company of our country as the research object. We reviewed the research about the definition of diversification, the motive of company's diversification, the essential condition of successful diversification, the income and cost of diversification, and the measurement of diversification and enterprise value. After that this article chooses 832 listed company's financial data and other correlation data from 1999 to 2003 which was listed before 1999 as the analysis sample, established the measurement of enterprise's market value and the degree of diversification which suited our country's actual situation. And has controlled the related endogenous variable's influence to the listed company's market value, we examined the correlation between company's enterprise value and the diversification, discovered the remarkable diversification premium phenomenon in our stock market. The scope was between 0.065-0.129. After draws this conclusion, this article compared the diversified and the specialized management enterprise's management performance, discovered that in our country's market the diversification premium is not come from the enterprise value promotion which related to the management improvements , but is from that stock market holds the welcome manner to the diversification strategy. After discovered this phenomenon, this article studied the interior capital market's superiority, the system environment superiority of diversified company possibly had , how did the biggest shareholder rob the small shareholder, as well as policy-type income which the listed company possibly obtained from diversification. Then we give the explanation. Finally we summarized this article and put forward the related policy proposal.