China's Listed Companies Diversification Strategy And Operating Results Of Empirical Analysis

In 1980s, the diversification strategy stepped into China. From then on, more and more entrepreneurs kept one eye on this issue and tried to experience this new strategy. Unfortunately, someone succeeded and someone failed. The diversification strategy once was promoted and adopted by lots of companies in the world. But with the elapsing of time, the going forward of the society and the environment changing of the inside and outside, people began to doubt the diversification strategy and the voice spread very fast.In our country, there are a number of listed companies are putting the diversification strategy into effect. The performance of the above firms is closely related to the stable development of our economy and the realization of our Nation's strategy. No doubt, the question of whether and how the diversification strategy could influence the performance of those companies using that strategy deserves further research.This article is aiming for getting the relationship between the diversification strategy and companies'performance through analyzing the correlation between financial performance index and the degree of diversification. Firstly, the author introduces relative concepts and knowledge of diversification strategy. Then, he introduces the techniques of analyzing and sampling in this case. After gathering and processing the data, he makes the conclusion. At last, the author presents the explanation of the conclusion and gives some suggestions of key points of implementing the diversification strategy in China. Hopefully, the article could be helpful to China's enterprises.