Corporate Governance,the Relationship Between Diversification Strategy And Enterprise Performance

The Chinese electrical appliances industry through the development of more than30 years,gradually becoming one of the important industries in China.However,the past few years,due to the disruption of the financial crisis,the rise of online mode and the rise of raw materials and labor prices,the development momentum of the Chinese electrical appliances industry has become increasingly slow.In order to deal with the new challenge,some home appliance enterprises gradually try to implement the diversification strategy.Based on this background,this article adapt the method of empirical analysis to our country home appliance industry listed companies in corporate governance,the interaction between diversification strategy and financial performance evaluation and analysis.Ountermeasures and Suggestions are put forward for the further development of listed companies in China’s home appliance industry.The research object of this paper is the panel data of 37 listed companies in the Shanghai and shenzhen stock market household appliance industry sector from 2012 to 2016..Starting from the profitability and growth of the enterprise,this paper USES the factor analysis to calculate the nine representative indexes,and measures the level of financial performance based on the calculated scores.Then on the basis of combing the literature,to our country home appliance industry listed company corporate governance structure,implementation of the diversification,and to study the financial performance,build the relationship between corporate governance,diversification strategy and financial performance of integrated model,and carries on the empirical study using multiple linear regression method,the final conclusion is as follows:(1)based on corporate governance,ownership structure,board governance is studied and the senior management incentive impact on financial performance for enterprises to carry out the strategy of diversification,the study found that equity concentration,has the proportion of tradable shares,the board scale and the proportion of independent directors and no significant correlation between financial performance;Executive level shareholding and executive compensation are positively correlated withfinancial performance;There is no significant correlation between the ownership concentration and the proportion of existing shares and the diversification strategy;The board size,the proportion of independent directors and the shareholding of senior executives are positively correlated with the diversification strategy;Executive compensation is negatively correlated with diversification strategy.(2)in view of status quo of home appliance industry listed companies in China,study the effect of corporate diversification strategy on financial performance,the study found that the enterprise to carry out the strategy of diversifying is negatively related to the financial performance,namely implement the strategy of diversification at present stage has the effect at a discount.(3)the strategy of diversifying the intermediary role between corporate governance and financial performance,the study found that diversification strategy in only executives shareholding,executive pay and partial mediating role between financial performance.In view of the empirical analysis,this paper proposes the following Suggestions:rationally optimizing the shareholding structure;Improve the board structure and the independent director system;Improve the company incentive mechanism;Rational analysis of internal and external environment;Focus on technological innovation and focus on the development of the main industry.