| As one of the core contents in corporate strategic management,diversification strategy has always been a research hot spot amongmanagement scholars. The motivation to develop diversification strategyhas a highly linkage with firm performance, while the results ofdiversification strategy are often measured by firm performance. Due tothe rapid development of real estate industry in recent years, there arequite a lot of enterprises pouring into the industry, and even manycorporations whose main business are not real estate development havealso implemented a diversification strategy, into the real estate industry.But how did this strategic choice impact on the performance of listedcompanies, and whether these companies should enter the real estateindustry and other issues are still unclear.In this paper, I take97listed companies which are new entrants ofthe real estate industry among stock markets of Shanghai and Shenzhenduring2001and2008as samples, using panel data from2001to2010,trying to reveal the impact of implement the diversification strategy onfirm performance. Based on the review of and comment on the domestic and foreign literatures, and combined with the particularity of listedcompanies, this paper uses normative analysis and puts forward theresearch assumptions. Then descriptive statistical analysis, Pearsoncorrelation analysis and multiple regression analysis and other empiricalstatistical methods are used for measurement tests.Through the analysis of the results of empirical research, we candraw four conclusions. And according to the conclusions, this paper putforward five suggestions to China’s diversified Listed Companies in theirstrategic choices of the implementation of diversification, in order toprovide decision-making references when they choose to enter the realestate industry, and also hope to promote the healthy and sustainabledevelopment of the real estate industry itself. |
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