| After the reform and opening-up, our country enterprise experienced a nearly 40 years difficult and tortuous development course. At first, we all-round negate to the western capitalism, and then t accept, and finally we try to find out our own way to develop. Diversification has the advantage of economies of scale and dispersing risk, is the enterprise development to a certain size for a variety of factors after consideration of a development direction. But at the same time, the giant group suddenly collapsed, making us raises questions on the effects of diversification. Weather diversification discount phenomenons in the western developed countries also occur in our country or not. Different from western developed countries, the socialist market economy system in our country make the market partly effective, there is a big development level between China’s enterprises and developed countries. So it is hard to find a strategic fit for our country using enterprises in western developed countries as sample. In order to solve the above problems, this article use the method of empirical research on the relationship between diversification and corporate value to provide reference for the establishment of relevant strategy.This paper reviews the domestic and foreign related research, using nearly 8 years A-shares data of listed companies as the research object, introducing diversity index in the process of research as a dummy variable classification basis to find the relationship between diversification and enterprise value. Empirical results confirmed that diversification wreck the value of the company, the value of Diversification Company is less than that of the professional management company. So enterprise should carefully consider of their characteristics and organizational form, treat diversity strategy didactically, and focus on the construction of core competence. Only by building the core ability can we form a solid foundation to promote the enterprise value. |
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