China's Private Listed Companies, Diversification Empirical Research, The Impact On Economic Performance

The third wave of mergers and acquisitions that happed in UnitedStates between 1950s and 1960s, made the level of diversification ofAmerican enterprises to the peak. And in the worldwide, corporatediversification had become more popular trend. The relations betweencorporate diversification and economic performance attract manyeconomists, and became one most important research topics in financialfield. In regard to theory and evidence, there is much literature about therelations, and they are voluminous. And In our country, there are moreand more private controlled listed enterprises, which become more andmore important in our country's economy. The essence of them is like toforeign family controlled private enterprises. Therefore, my researchstudying the impact of diversification to performance based on Chineseprivate controlled listed enterprises, have important theory and practicalsignificance: at the theory, testing the applicability of foreign theoryabout the diversification discount and premium in our country; in practice,studying whether there is net earnings created by diversification in ourprivate controlled listed enterprises.The thesis adopts norm and positive ways, and relying on positivemainly. Firstly, the thesis has a review about the related domestic andforeign literature, considering the particularity of our capital market andprivate controlled listed enterprises, and takes norm analysis. Then, thethesis makes a design, puts forward hypothesis and constructs relevantmodel, and takes positive analysis lastly.This thesis adopts A-share of Chinese stocks market includingShanghai and Shenzhen market in 2004 as a research sample. Aftercombination the theory analysis and experienced test on the impact ofdiversification to performance, the thesis draws some conclusion: anegative relation is founded between diversification and performance inour private controlled listed enterprises; the special enterprises havebetter performance than diversity diversified enterprises; between IPOsand indirect listed enterprises, there is difference on the impact ofdiversification to performance. Based on that, the thesis analysis thereason why diversification and performance are negative. One is that the special enterprises have higher production efficiency than the diversifiedenterprises. The other important reason is the two listed ways, IPOs andindirect way, the former have deeper diversification and betterperformance. At the end, thesis gives some suggestion about thediversification strategy that taken by our private controlled listedenterprises.