Study On The Relation Diversification And Corporate Performance

With China's thirty years reform and opening up to the world and improving market environment,the private enterprises have played an important role in China's economy.Now more and more private enterprises of China have chosen the diversification strategy,while many enterprises of developed countries start to transform their strategy from diversification into specialization.Is the diversification of the China's private enterprises effectual? Does it bring diversification discount or premium? So the study on the impact of diversification to performance based on China's private enterprises has an important mean.This thesis adopts norm and positive ways.In the part of norm study,this thesis has a review about the foreign and domestic literature and summarizes the theory of the diversification,including the definition,the class,the measurement of the diversification and the academic interpret about the diversification strategy.In the part of positive study,this thesis chooses A-share of Shenzhen Security Market in 2005-2007 as the research sample.Through the analysis of descriptive statistic,compare of different class enterprises and regression,finally, this thesis draw the conclusions that the enterprises which have single business have the better performance than that of diversification;the performance of low-degree diversification is better than that of high-degree diversification;the enterprises which have correlative businesses have a little better performance than that of no correlative businesses;the total diversification degree and the performance are significantly negative relation;the unrelated diversification and the performance show significantly negative relation;the related diversification and the performance are positive,but not significant.