Empirical Research On The Degree Of Diversification And Operating Performance Of Chinese Manufacturing Listed Companies

In the process of enterprise development, with capital accumulation and technological innovation, in order to improve corporate performance, the majority of enterprises implement diversification , which has become their strategies to pursue growth. However, since the concept of diversification has been proposed, whether it is theoretical or practical, the verdict is still out on the relationship between diversification and corporate performance.Western scholars have has relatively mature study on the theory of diversification, but because in the study of the relationship between diversification and corporate performance, the different methods have been used, so, the conclusions of the study are not the same. From the mid-90's of 20th century, Chinese scholars have began to pay attention to the issue of corporate diversification. Their research focused on to introduce the theory of foreign and analyze descriptively the practice of domestic enterprises, some scholars took the empirical research on the relationship between diversification and corporate performance, however, they also did not come to the same conclusion.As a global manufacturing power or "world factory", the manufacturing sector is the largest industry in China, which plays an important role in the national economy. This article thinks that manufacturing enterprise is representative in China's enterprises. Therefore, this article selected 2004-2006 relevant data of Shenzhen-listed 109 manufacturing enterprises to carry out systematic analysis, to test the theoretical assumption of the relationship between diversification and corporate performance ,and found that the degree of diversification of China's manufacturing enterprise was a negative correlation relation with corporate performance, and carried out to explain the theory and experience, with a view to provide theoretical support for the practice of the diversification strategy of Chinese enterprises.