Research On The Relationship Between Diversification And Enterprise Performance Based On The Shanghai And Shenzhen Stock Listing Corporation

With the continuous development and expansion of enterprise scale, diversificationstrategy has gradually become the primary problem the companies face. Since theemergence of related diversification, scholars at home and abroad, the research ofdiversification emerge in an endless stream. On the international level, the third wave ofmergers and acquisitions of1950s in America not only in practice promote the diversifiedbusiness strategy for domestic enterprises to the rapid development, but also expand theresearch theories of diversified enterprise theory；at the same time, it causes close attentionwhich the scholars in order to solve the problem of the effect of diversification onenterprise performance. In earlier50th, the foreign countries has carried out exploratoryresearch and practice aiming at the diversification issues, and successfully accumulated alot of theoretical basis and practical experience. The research on the diversification ofChina is late start, carrying out theoretical study gradually by learning from foreignresearch experience, and fully combining with its special institutional background andmarket environment since the1980s. With the rapid development of economy and thecontinuous improvement of the market environment, the space for the development ofenterprises is increasing, the development speed also gradually accelerated, therefore, thenumber of listing Corporation have gradually increased.In this research, we mainly use the2009-2012annual report of the Shanghai andShenzhen stock listing Corporation, carrying out the empirical analysis of the relationshipbetween diversification strategy and enterprise performance in view of them. Theconclusion of the study shows: in the non excessive diversified range, the degree ofdiversification strategy is not related to the enterprise’s internal performance, while it ispositive associated with the external market performance；in the excessive diversifiedrange, the internal performance and external market performance within the enterprise areboth negative associated with the degree of diversification strategy.