The Impact Of Board Characteristics On The Relationship Between IT Enterprise Diversity And Performance

As the time for Big Data is coming and "Internet +" strategy is proposed, IT industry has become a leader in the economic development of our country. The highrisk and high-payoff characters drive it to have a stronger tendency to take diversification strategy than the enterprises in other industries. Diversification management strategy can make it achieve the rapid development by taking advantage of its own resources, reduce transaction costs, and decentralize management risk to eventually improve business profits. All this will help to improve business efficiency.There are serious agency conflict among modern corporate system enterprises. And it rises the agency costs. So the relation between diversification degree and performance becomes more complicated and the phenomenon of diversification discount often appears. Good corporate governance mechanism will be helpful to cut agency cost and the alleviation of agency conflict. At the same time, it will promote the implementation of diversification strategy and ensure the effect of the implementation of diversification strategy to increase the enterprise performance.So at the perspective of corporate governance, making a research on restricting factors between IT enterprise diversification strategy and performance constraints has theoretical and practical significance.This article explores the relation among board characteristics, diversification and corporate performance based on diversification theory and the principle agent theory. First of all, we proposes the theoretical basis of this paper-- the diversification theory and the principal agent theory based on the previous studies.And then, the paper discusses the role of corporate governance on the relationship between diversification and corporate performance and put forward the theoretical hypothesis. Then the paper construct the moderating effect model and collect IT companies samples listed in China. Next, we use the descriptive statistical analysis and hierarchical regression method to make empirical test. Finally, this paper finds out the different regulation effects of corporate governance factors on the relationship between the diversification and enterprise performance of IT listing Corporation.This paper aims to propose the corresponding suggestions according to the empirical results from the different perspectives of corporate governance, so that the IT listing Corporation in China can improve the corporate governance mechanism according to the characteristics of the company’s own development and the environment of the external market. At the same time, it also can make the diversification strategy activities into a virtuous cycle and improve the effect of the diversification strategy, in order to provide the theoretical guidance and practical significance to the strengthen of the core competitiveness.