Research On The Relationship Between Diversification And Financial Risks Of China's Listed Companies

With the development of China's economy and society, the emergence of top-level ceilings in the development of single-sector enterprises, the intention of Chinese enterprises to expand the development of business, diversified development is increasingly becoming a magic weapon for enterprises to seek a breakthrough. In this process, diversified development has brought many influences and changes to the financial status of enterprises.The main characteristics of financial risk and financial risk of diversified enterprises in China are described, and the effects of diversification on internal capital market, internal financial control and internal financial information are mainly studied.This paper puts forward that the causes of financial risk include diversification of liabilities, low efficiency of internal capital allocation, difficulty of financial integration, failure to achieve optimal allocation of resources, poor financial control and poor quality of financial information in China's diversified enterprises.On the basis of summing up previous research results and combining with the expositions on the impact of diversification on financial risk, this paper proposes that in the process of enterprise development, too many industries will increase financial risk, and too low proportion of main business will increase the financial risk of enterprises. In order to verify the correctness of these two hypotheses, this paper selects 30 A-share listed companies' financial data to make an empirical analysis of the hypotheses. By using the F-value model and combining the linear regression method, we determine the financial risk value F and firm-And negative correlation with the proportion of the main business output value of the enterprise, at the same time deduce the financial risk value F and the degree of diversification of enterprises was negatively correlated.