| Since the 60's of the 20th century, corporate diversification theory and business circles have become the focus of attention. As the same time of the rapid development of economic and market, businesses no longer satisfied with a single mode of operation, as a typical enterprise business strategy, more and more enterprises purse the diversification model, trying to reduce business risk by diversification, so that enterprises embark on a healthy and stable development. However, in the process, there are success and failures and many companies related to financial issues is the reaso, as the source of external financing and internal financing structures are not well adapt to the requirements of diversified development, ultimately leading to financial chaos. Therefore, from a financing point of view to study the structure of corporate diversification, not only of theoretical significance, but also practical significance.This paper theoretically analysis corporate diversification and capital structure first, domestic and international diversification and capital structure theory and empirical research results are reviewed. Then in the degree of diversification and capital structure of the statistical situation of listed companies based on the analysis, structural regression model, using regression analysis diversification and capital structure correlation of listed companies from 2006 to 2008 between empirical research and inspection, concluded that diversification have a negative correlation between capital structure. As corporate profitability and capital structure of closely related, this paper also diversified and profitable relationship was examined, no significant correlation between the two drawn. Finally to the correlation of diversification and the capital structure of listed companies in China, we have given the rationalization of policy recommendations, to promote the health stable and rapid development of listed companies in China. |
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