Corporate Governance Structure And Diversification Of Strategic Relationships

Diversification strategy is an expansive business strategy enterprise adopted when it develops to a certain scale, it is an important strategic mode of enterprise's development, while corporate governance is the deep determinants for diversification strategy. Now there are more qualitative study on diversification in China, quantitative researches mainly focus on the relationship between enterprise diversification and performance. But there are few studies on the relationship between corporate governance and diversification. The author looks forward to combining the theory researches and empirical results, uses newer empirical data, more comprehensive research methods, from a deeper, broader perspective to study the relationship between corporate governance structure and diversification, and how to improve our corporate governance structure to suppress the company's blind impulse of adopting diversity.This article first uses agent theory and property rights theory to study the relationship between corporate governance structure and diversification strategy. Then the author bases on agent theory, adopts the data disclosed by the 2008 Annual Report of listed companies, and chooses the appropriate indicators of corporate governance structure and methods to measure diversification, and by way of descriptive statistics, correlation analysis, regression analysis, studies the realistic relationship between corporate governance structure and diversification strategy. The author gets the following main conclusions:1. The proportion of state-owned shares has no significant relation with diversification strategy, but the proportion of corporate shares has a negative correlation with the degree of diversification;2. The concentration rate of stock and corporate diversification has a significant negative correlation;3. The two indicators of board structure: scale of board and independent directors have no significant relation with diversification strategy;4. In the case of one holds both the position of general manager and the position of chairman of board, the managers tend to adopt diversified strategies;5. Managerial Ownership has no significant relation with diversification strategy.Finally, based on the empirical results, this paper advances some proposals to improve the corporate governance structure. Such as we should optimize equity structure, resolve the phenomenon of state-owned shares'ownership "absence", and strengthen the role and status of the board through legislation.