Diversity, Growth And Corporate Governance’s Regulatory Effect,

As the main method for the outside world to know enterprises, growth isincreasingly drawing attention from theory and practice. As the main form to enlarge thescale of operation and to boost competitiveness, diversity has gradually become one ofthe enterprises methods to expand their scale. Facing complicated and changing externalenvironment, a number of GEM (growth enterprise market) listed company can stillmaintain steady, health and sustainable development, which is related to corporategovernance mechanism. As the main driving force to accelerate the development speed,GEM listed company’s growth is receiving attention from managers, operators andinvestors.Based on the theory of corporate governance and diversified operation, this paperchooses GEM listed companies as object of study, and selects financial data of166GEM listed company from2011to2013as samples. Against the background ofdiversified strategy this paper builds analytical framework based on diversifiedoperation results and decision-making mechanism, and uses multiple linear regressionto analyze diversified operation and growth of company, and applies multiple linearregression to analyze and study the features of corporate governance regulatory effecton diversity and growth from three aspects of the private equity firms’ governancemechanism, board of directors’governance structure and management governance.According to research, there is positive correlation between diversity and growth.That is to say, the higher the degree of corporate diversification, and the larger thepossibility of corporate growth. Diversified operation can reduce company’s operationrisks and promote company’s development. Further research reveals that: goodcorporate governance structure can strengthen diversified operation facilitation tocompany’s growth, which is increasing diversity premium. Accordingly, the lack ofcorporate governance structure can minimize the facilitation. This fully shows thatcorporate governance importance to company’s diversified decision-making.