Government Intervention,Diversification Strategy And Value Of Local State Listing Company

In fact,the diversification of enterprises in our country is only an economic phenomenon,and what really deserves to be studied is the system environment which is hidden behind it.To judge the advantages and disadvantages of these system environment and provide the basis for our country’s economic reform.In the third Plenary Session of the 18th CPC Central Committee the party put forward the guiding ideology of comprehensive deepening of reform in China--focus on making the market play a decisive role in the allocation of resources,accelerate the improvement of modern market system,efforts to solve the problems such as excessive government intervention.Therefore,based on the new institutional environment proposed by the party in the third Plenary Session of the 18th CPC Central Committee as the background,this paper analyzes the achievements of China’s comprehensive deepening reform in the context of the diversification strategy of local state-owned listed companies as a bridge.Compared with the direct effects of diversification strategy on business performance,the research in this area is relatively small,and needs to be further studied.The background of the new institutional environment put forward the party after the third Plenary Session of the 18th CPC Central Committee,this paper takes 2014-2015 years to two years and two cities of Shanghai and Shenzhen A shares of listed companies as research samples,through regression analysis of sample data under the government intervention,and the influence of diversification of local state-owned listed companies on corporate performance.The effects of diversification strategy on the performance of local state-owned listed companies in Pyramid structure level and the different degree of the province,autonomous region and municipality directly under the central government.In this paper,we find that the degree of diversification has a negative impact on corporate performance,but not significant.In the further study of the regulation of government intervention,this paper finds that the diversification strategy of local state-owned listed companies has a significant negative impact on corporate performance.The effect of the Pyramid structure of local state-owned listed companies on the efficiency of enterprise operation,this paper found that the structure of Pyramid to lower level local state-owned listed companies,the impact of diversification strategy on firm performance is stronger.In addition,this paper also found that the province,autonomous region,and the lower the degree of marketization of local state-owned listed companies,the diversification strategy of the negative impact on enterprise performance is stronger.The results of this study,one can study the theory and enrich the local state-owned enterprises diversification strategy and Pyramid structure,on the other hand,can also provide valuable reference and guidance for the reform of state-owned enterprises in the field of practice.Through the analysis of influence of local state-owned listed companies,diversification strategy on firm performance,that after the third Plenary Session of the 18th CPC Central Committee,China’s modem market system has been improved to a certain extent on the local state-owned enterprises too much government intervention problem has been alleviated.Through the analysis of regulation of government intervention,shows that although China more of the local state-owned enterprises in the third Plenary Session of the 18th CPC Central Committee after the intervention has a certain degree of ease,but to solve the government intervention lead to inefficiency of local state-owned enterprises we have a long way to go.Through the analysis of the impact on the operational efficiency of local state-owned listed companies in Pyramid enterprises,Pyramid showed that the effect of structure of local state-owned listed companies have the support and protection effect does help reduce the diversification strategy of local state-owned listed companies by government intervention and plunder is helpful to improve the local state-owned listed companies operating efficiency.