A Study On The Relationship Among Assets Size,Diversification And Firm Performance

Diversification is a management method of modern corporation evolution to a certain level generally adopted by American scholars.Ansoff first proposed the theory of diversification of enterprise,by academic and business circles gradually recognized and accepted,and applied in enterprise management.But with the continuous development of enterprises,because of development,the enterprise mergers and acquisitions are not familiar with good at business,resulting in enterprises scattered resources,increase the cost of enterprise operation,increased the difficulty of the enterprise management problems cases gradually increased.Since the reform and opening up,China enterprise business philosophy development great changes in strategic action is also positive to the west,has become the main means of diversification strategy in the market economy system is still not.To improve the environment,the evolution of diversification for Chinese enterprises to avoid the environmental uncertainty brought by the operation risk and maintain the competitive ability of enterprises to fulfill their own long It is also an important strategic means for the development of Chinese enterprises in a certain stage,although it is still controversial,but it still exists in the real societyThis paper includes the portfolio theory in integration,enterprise growth theory,market power theory based diversified asset size and contains the main idea of the theory of boundary theory and utility theory and other assets on the main idea of the theory,puts forward to the enterprise asset size and between diversification and firm performance based on the exploration and the integrated use of literature and theory analysis,statistical analysis,regression analysis,comparative analysis,qualitative and quantitative methods of threshold regression method.Analyze and answer two research questions:(1)whether there is a causal relationship between diversification and corporate performance two;(2)whether diversification by asset size impact on firm performance? Different asset size strength interval,the diversification's effect on firm performance effect differences?Taking manufacturing enterprise as an example,select 2009-2015 seven years of domestic shares listed on the Shanghai and Shenzhen 530 manufacturing enterprises constitute the basis for the data.Than the main business enterprise,comprehensive sort out the measure of the degree of diversification of enterprises to adjust the Beh Finn Dahl index,selected the rate of return on net assets(ROE)to measure the performance of enterprises,to measure the logarithm of total assets assets in addition,choose fixed rate of pre tax profits,operating cash index,asset liability ratio,profitability,liquidity ratio,R&D spending,the company attributes a series of financial and non financial indicators as control variables.The Excel2007 step processing to get the initial data.By using Stata12 least squares(OLS),fixed effect model and threshold regression.Is the study on the relationship between diversification and corporate performance,and then explores the relationship of assets under the influence of diversification and corporate performance.Based on this,too The following conclusions:(1)Diversification has positive effect on firm performance,coefficient of 1.56,indicating diversified enterprises although there is conducive to the development of enterprises,but the effect is obvious.The bigger the variable accidentally,the cash operation index,liquidity ratio in performance is negatively related,inhibition of asset size on the performance of enterprises is the most obviously;EBIT,asset liability ratio,profitability,R&D expenses are significantly positive correlation to performance.(2)Both state-owned enterprises and non state-owned enterprises,the diversification of corporate performance have a positive role in promoting,but state-owned enterprises positively than non state-owned enterprises is more obvious,this may be because in the process of diversification of private enterprises in China is not only facing the industry market access policy discrimination also,higher credit threshold.(3)The relationship between corporate assets will definitely influence the diversification and corporate performance in a certain extent,when the size is less than 19.613,improve the professional management of enterprise performance is more favorable;when the asset size ranged from 19.613 to 20.298,showed a significant positive correlation between diversification and corporate performance,then efforts to expand its diversification level conducive to enterprise development;when the enterprise assets of more than 20.298,while diversification can improve their performance,but less than 31.928 lines of second numerical coefficient 9.904 threshold interval.If the threshold value is the critical value,the sample according to the scale of enterprise assets divided into high and low three different regions.Obviously and the scale of the impact on corporate performance in different level under different regimes,showed a clear threshold characteristics.(4)When the manufacturing industry enterprise asset size is less than 19.613,in the capital,human capital,technology and other core resources are not sufficient,focused on the use of existing resources management companies can easily get the ideal management effect.When the enterprise growth to 20.298,the remaining resources will produce certain at this time,companies such as diversified mode of operation the remaining part,can be effective for enterprise core resources and transformation,and diversified mode of operation but also conducive to avoid external environment uncertainty.In the enterprise gradually grow into large enterprises,asset size reached 20.298,expand diversified business will reduce the use efficiency of enterprise capital management,the Department will be better a large number of subsidies for the poor management of the Department,if things go on like this will affect the overall performance and long-term development,then adjust,divest non core business units To improve the degree of specialization,the development of related diversification strategy,so that the company's core resources and business operations in a suitable state.