The Study On The Performance Of Diversification Of China Evergrande Group

The real estate industry has become saturated after more than twenty years' development,and combined with the regulation of current national macropolicy,the profit margins of real estate industry gradually reduced,and industry risk is also growing.Real estate enterprises are on the road of diversification,in order to increase the profits,stabilize the enterprise income,reduce the business risk,and realize the long-term sustainable development.Under this background,this paper chooses China Evergrande Group as the research object,analyzes it's diversified operations' performance,and gives references to more and more real estate enterprises that want to diversify.This paper analyzes the concepts,types and motivations of diversification firstly,and then reviews the research status of diversification and enterprise performance in China and abroad.Then,this paper analyzes the current operating state of China Evergrande Group's diversification,introducing the industries,the types,the motivations and the background of it's diversification,and paves the way for the following case analysis.Then this paper uses the event research method,financial index method and comparative analysis approach to make the performance evaluation from the market effect and financial performance indicators.The results show that diversification can increase the enterprise's share price,but it reduces the financial performance indicators.Finally,this paper summarizes the success and failure of China Evergrande Group's diversification.Based on the analysis results,this paper analyzes the causes of the results,and then puts forward concrete suggestions to China Evergrande Group,and gives references to more and more real estate enterprises that want to diversify.