The Empirical Research On Relationship Between Diversification Strategy And Performance Of High-Tech Listed Companies

What strategy a company should choose has always been the focus in theory and practice. Whether a company should process specialization or diversification strategy depends on a series of complex factors. Both of specialization and diversification has its advantages and disadvantages. In academe, one of the hottest topics in strategic management is the research of the performance of diversification strategy, but until now, researchers have not come to an agreement on the relationship between diversification strategy and enterprise performance, and their samples were mostly about the whole listed companies, but so little about the high-tech listed companies. This paper will research these problems: the high-tech listed companies which are considered as the underpinning of economics development should exercise what kind of development strategy to achieve good performance; what influences the recent diversification strategy have on the performance; what the relationship between strategy and performance.First, this paper will summarize and analyze the former research fruits according to the relationship between the degree and types of diversification and performance. And then, we will simply introduce the theory gist of diversification, the measure of diversification degree, and the categorizing method of diversification types, grounding the academic base for empirical research.We screen out the financial data of 139 high-tech listed companies from six industry fields which listed in Shang Hai and Shen Zhen stock markets, and then use the methods of regression analysis and variance analysis to compare the commonness and differences of rules and characters of financial performance of listed companies which have different diversification degree and types. We find out that: the degree of diversification has a minus correlation with financial performance in China high-tech listed companies, i.e. companies which have single business type have the best performance, the performance of low-degree diversification is better than that of high-degree diversification, companies which have correlative businesses have a little better performance than companies...