An Empirical Study On The Relationship Between Diversification And Economic Performance Of Listed Corporations Of China

When companies develop to a certain degree, diversification strategy becomes one of the most important problems of the enterprises. For developed countries, they began to research the subject from the 20's century, and have got some conclusion already. Scholars of our country began to research this subject in the 1980s. Because of the differentiation of the market and methods, there are some diversificationes among the conclusion. The developed countries have already moved from carrying out diversification strategy to specialization strategy. Domestic listed companies have developed towards the right direction. On this basis, the thesis use the methods from abroad and home, combining the present market of our country, giving the relationship research between the diversification and performance of the listed companies in our country.The thesis first gives the definition and classification of the diversification, then sort out the conclusion of all the scholars abroad and in home. At the fourth chapter, the thesis gives an analysis of the diversification operation environment, mainly from the risks and advantage. The contents include: (1) The factor which effect the diversification; (2) The performance of correlated diversification and non- correlated diversification; (3) The regression of the listed corporate performance. The thesis chooses 105 listed corporate from Shen, Hu securities bourse, collecting and cleaning up the data, designing the correlated variable and confirming the logic relationship of it. Regression analysis, comparison analysis and correlation are used to test the relation between diversification and performance. The result shows that, in the three years we choose, the performance of some corporate are coming down after they carried out diversification. In a short time, carrying out diversification can raise the performance, but in a long time, it needs new management capability, technology, human resources, but the enterprise often can't be satisfied the requests. Obviously, the effect the excessive diversification brings to the enterprise needs several years'analysis, only one year's analysis can't reflect the tendency.All of these illustrate the importance of choosing the diversification. At last, the thesis gives the proposal for later research direction.