A Research On Chinese Listed Corporations’ Diversification And Performance Based On The Agency Perspective

Diversification as an important form of Enterprise development, has long beenconcerned about the domestic and foreign scholars and research. Foreign scholars throughthe lengthy analysis summarized a number of significant diversification theory, theoriessuch as market forces, resource allocation theory, agency theory. Popular in empiricalresearch in economics before, most scholars have to rely on foreign countries for basicresearch of these theories and supplement, and when the empirical method commonlyused in the study of economics, the full use of Chinese scholars in China The samplere-analysis of corporate diversification and firm performance relationship, draw a lot ofinteresting and different from the overseas studies diversification theory.This paper reviews a wide range of scholars for the course of the study, found thatalthough all due to the different samples have different perspectives are drawn in line withthe diversification of its logical system theory, but few enterprises are facing in ourcountry is an important issue and a combination of foreign diversification theory, it is theagency problem. With our business growing, caused by the separation of ownership andagency problems in the enterprise development process stand out. Through this analysis,the agency problem and agency costs arising from the diversification of businessdevelopment with a certain contact, therefore, became the agency costs affect the businessperformance of China’s diversification is a key element of the article is from the agentpoint of view of China’s diversification of listed companies is how they affect businessperformance.Through our867diversified company with businesses in2007-2009EmpiricalAnalysis, with these companies to carry out a wide range of specific circumstances, candraw the following conclusions:1. Enterprise will bring more diversified developmentagency costs.(2) the diversification of China’s enterprises tend to discount theperformance of a diversified, will have a negative impact on business performance.3China’s state-owned enterprises and private enterprises have produced different degrees ofagency costs, the impact of diversification for business performance is also inconsistent,diversified private enterprise business performance will bring more negative impact.In reaching the above empirical findings, this paper presents the development ofenterprises in line with our recommendations: First, to improve corporate governancestandards, reduce agency costs; and then to implement a core competence, quality ofdiversity; Second, the implementation of multi-operations to the extent appropriate.