Regional Civilization,Political Connections,Ownership Property And Diversification Strategy

Under Chinese economic transformation environment and relationship-oriented social context, the relationship between government and enterprises is widespread concerned from academia. In order to improve business environment, how can the government promote regional development? In order to improve operational efficiency and effectiveness, how can the enterprises grasp the relationship between business and government? It needs constantly study. In order to get more operating income, companies need to diversify development in certain timing. By this time, how to build political relations with the government? How to choose the entering industry and region? It has become a political strategy problem of Chinese enterprises.This paper will take the regional civilization, political connections, equity nature and diversification strategy as studied logic. Choose Chinese listed real estate companies as the research object. Specially investigated: first, the relationship between regional civilization and diversification strategy; second, the relationship between political connections and diversification strategy; third, the relationship between ownership property and diversification strategy; forth, the replacing role of regional civilization, political connections and ownership property in the impact of diversification strategy. In this paper, a preliminary conclusion can give out to clear the relationship between regional civilization, political connections and the equity nature and diversification strategy.After theoretical analysis and empirical research, the result shows that: first, regional civilization has a significant positive effect on the real estate business industry diversification, but a negative effect on regional diversification; second, political connections has a significant positive effect on the real estate business regional diversification; third, the state-controlled real estate companies has a significant positive effect on the real estate business regional diversification; forth, regional civilization and political connections has a substitution effect on real estate business' s regional diversification; fifth, regional civilization and ownership property has a substitution effect on real estate business' s regional diversification; sixth, political connections and ownership property has a substitution effect on real estate business' s regional diversification.