The Empirical Research On The Diversification Of The Listed Companies In The Western Region To Its Growth

Choosing what kind of strategy is the key to enterprises' development, strategy has a certain guiding role for the growth of the enterprise. Therefore, both enterprise managers and theoretical scholars attaches great importance to the strategy. Diversification strategy can disperse the risk of operating in a single industry, make full use of the remaining resources of the enterprise, play a synergistic effect and improve the competitiveness. But also bring a series of problems, such as increase of the difficulty of management, enterprise internal preemption resources of different industries, inefficient allocation of resources and so on. A large number of enterprise operation and management experience at home and abroad also shows us different results of diversification strategy: success or fail. Diversification strategy which is rushed to imitate by many enterprises begin to being questioned. In the same way, academic research achievements of diversification strategy is also different, some are certain, but some are opposed.This paper selects manufacturing industry listed companies in western region in China as the research object, these companies we selected are listed before December 31,2011. Based on panel data of 2012-2014 three years, this paper analyzes diversification strategy from the perspective of enterprise growth, and analyzes the relationship between diversification strategy and enterprise growth through the empirical analysis. Hoping can provide some Suggestions for the development of other enterprises in the western region in China. This paper first reviews the theory of diversification, the theory of enterprise growth and the theroy about the relation between diversification and enterprise growth at home and abroad; Second, referencing to the 2011?the national economy industry classification?,this paper selects the specialized rate(SR) of Rumelt and correlation ratio(RR) of Wrigle as a division standard of diversified types. This paper selects the djustive herfindal index(Adj- HHI) to measure enterprise diversification. Third, this paper selects 10 indicators form three aspects( the level of profitability, the level of assets operation and the level of strategic development) to evaluate enterprise growth. Then, using factor analysis method to calculate the growth points of the sample enterpris; Finally, this paper uses the descriptive statistical analysis, regression analysis to study the relationship between diversification and enterprise growth, and uses independent sample t-test to compare the difference between the growth of related diversification and the growth of unrelated diversification by grouping.From the point of empirical analysis, first, for the western region manufacturing listed companies, there is a negative correlation relationship between diversification and enterprise growth; Second, for related diversification enterprises, the relationship between diversification and enterprise growth is not sure; Third, for unrelated diversification, there is a negative correlation relationship between diversification and enterprise growth; Fourth, the growth of related diversification enterprise is better than unrelated diversification enterprise. According to the result of empirical analysis, this paper puts forward some constructive suggestions for diversification strategy development of other enterprises in western areas.