A Study On The Relationship Between Diversification Of Real Estate Enterprises And Enterprise Performance In China

Diversification strategy has strong advantages in the diversification of risks,seeking new profits,avoiding excessive competition,and is the inevitable choice for the long-term development of enterprises.With the popularity of diversification strategy,whether enterprises are suitable to implement diversification and how to implement it,and the relationship between them,has always been the focus of academia and industry.And the academic research is still controversial,which can not effectively guide the real estate enterprises to implement diversification.Based on these research status,combining with the development needs of theory and industry,this study has an important theoretical and practical guiding significance.In recent years,with the introduction of a series of macro-control policies,the real estate industry has ended the era of profiteering into the deep adjustment period,and real estate enterprises begin to try diversification.Based on the research results of domestic and foreign literature,this paper systematically studies the relationship between diversification and enterprise performance of real estate enterprises with the theoretical basis of resource abundance theory,portfolio selection and positive and negative effects of diversification and puts forward the relevant assumptions.This paper selects 99 real estate listed companies in China as research sample,and takes the three years' average financial data in 2013-2015 as sample data.Based on the conventional index profitability,this paper creatively adds anti-risk capability to the indicator system of enterprise performance,and through SPSS19.0 software adopts descriptive analysis,correlation regression analysis to build the measure regression model between diversification and enterprise performance so as to prove therelationship between them and verify the correctness of the assumption.The results show that 84.83% real estate enterprises in China make business diversification,and most enterprises choose three to five industries to carry out real estate activities except main business,but the overall level is still not high with the average level of 24.23%.The increase of the diversification of real estate enterprises in China is not conducive to the enhancement of enterprise profitability,which helps to enhance the enterprise's anti-risk capability;for the profitability of Chinese real estate enterprises,the enterprise performance with related diversification is better,and the profitability of the real estate enterprises in the single business model is the best;for the anti-risk capability of real estate enterprises in China,the enterprise performance with non-relevant diversification is better.Finally,on the basis of empirical results,this paper puts forward the countermeasures and suggestions to improve the diversified performance from the perspective of the external market environment control and the internal strategic management decision of the real estate enterprises in China,in order to provide basis and guidance for the diversification decision-making of real estate enterprises.