Research On The Relationship Between The Diversification And Capital Structure Of Listed Companies From Shandong

The diversification developed in the western enterprise, along with the continuing improvement of our country's marketing environment, more and more enterprises from Shandong choose the diversification to expand the scale and to enhance competitive ability. Some enterprises rapidly became the well-known enterprise through the diversification; also some enterprises move towards declining because of the diversification. The failure of the diversification finally manifests all concentrates on the following financial aspect: the fund chain break, the capital can't pay off the debt and so on. The failure of diversification certainly is not due to the question of the diversification itself, But is because of the unreasonable capital structure of enterprise; the fault of financing speed.Diversification is one kind of strategic choice, many enterprises attached much importance to the diversification, and massive research has also been done in the theory field. At present, theorists have done a lot of research on the relationship between the diversification strategy and enterprise performance, but few research have been done in the relationship between the diversified operation and capital structure, and also they draw the various conclusions in the real diagnosis. Under unique market condition in our country, listed companies prefer financing from stockholders, the debt financing is insufficiency, its capital structure is not good enough to compare with other enterprises, many mature research results certainly are not suitable in our country. The capital structural theory also still cannot provide the enough support to our country at present diversification strategy, therefore it is necessary to start a research on diversification issue from capital structure aspect to promote the enterprise diversification to a healthy development.Based on the above question and the goal, this article profits from western related theory, analyzes the relationship between diversification and capital structure about Shandong listed companies. Concrete content arrangement as follows: Chapter 1 elaborated the significance of topic, the goal as well as the research technique and so on. Chapter 2 introduces diversification concept and the motive, review the research results of the domestic and foreign related diversification strategy. Chapter 3 analyzes the diversification development of listed companies from Shandong, the diversification industry characteristic and the low property debt rate, the unreasonable capital feature internal debt structure. From this draws out question to optimize the Shandong listed companies' capital structure in the diversification upsurge.Chapter 4 designs this article's real diagnosis research frame: One, diversification and capital structure measure method and target choice; Two, according to this article sample selection scope and the standard, figured out each figure's list price of the chosen the sample, and make some the preliminary statistical analysis. Three separately analysis the following two aspects: "the relationship between the diversification type and the capital structure "and" the diversification and the capital structure". The latter aspect, adopts the way which layer upon layer progressives to carry on, Through the incremental method from four aspects, the relationship between capital structure and diversification can be analyzed, and the conclusion is that the relation is not linear positive related, but the curve relation from ascending to descending. From this we conclude that there is a curve relationship between the capital structure and the diversification, according to the above conclusion, this article get a tendency chart of that the diversification index various with the capitals structure. Finally indicated: (1) There is a up down " U" relationship between the capital structure of the listed company and diversification, and this kind of relationship is strengthening year by year. (2) Long-term debt rate has a negative relationship with diversification level, but it is not remarkable. (3) When the long-term debt rate is somewhat low, diversification management debt increase more dependences on current liability. (4) From the capital structure aspect, the first choice of diversification is the leading service, and the second choice is the related service, it is not suitable to carry on the unrelated diversification management.In the chapter 5, the article gives some suggestions on the diversification of Shandong listed company as following: (1) moderate diversification can optimizes capital structure; (2) the construction of regional finance ecological environment can optimizes capital structure; (3) the implementation of core competitive ability diversification management optimizes diversification type; (4) fully discloses the diversification management information to ease research and supervising and managing. Finally this article points out the insufficiency and the future research direction.