An Empirical Study On Diversification And Performance Of China's Listed Tourism Companies

The research of relationship between diversification and enterprise's performance is the mainly topic in academics and industry. In academics, abroad mainstream of opinion believes that diversification strategic which is well-transplanted core ability of enterprise can improve enterprise performance.Diversification is not fresh topic for tourism enterprise. OCT dedicates to the strategy of 'Travel + Real estate', CITS has been involved in the high-tech, Xi'an Tourism entered oil exploitation. Tourism enterprises continue to try to diversify. Could this kind of strategic choice bring about better performance? Is there some link between performance and diversification? That's precisely the purpose and significance of this paper.There are 5 chapters in the thesis.The first three chapters constitute theoretical part. Chapter 1 briefly describes the purpose and the framework of the study. The second chapter makes the review of literature at home and abroad. The third chapter summarizes the theoretical background and the definition of relevant concepts.The last two chapters are empirical part. Through regression analysis, final conclusions were drawn. For listed tourism enterprises, here is no link between diversification level and performance. However, for highly diversified enterprises, higher diversification will bring about better performance on ROE (Return on equity). The impact coefficient of Diversification within the industry on corporate performance is greater than diversified industries. Chapter 5 makes case study, and gets another rule. The companies of industries related diversification will get better performance than companies diversified within the industry and those of industries unrelated diversification.