Research On The Risk And Causes And Countermeasures Of The Diversification Strategy Of Listed Companies

With the increasing rise of the market mechanism and the strategic business theory of enterprises,many enterprises,especially the listed companies,take diversification as the basic strategy of the enterprise.In 2007,the China Enterprise Federation published a report on the analysis of the reasons for the failure of China,it says that the irrational diversification is the main cause of the overwhelming majority of business failures,and listed companies as the main motive force to promote the rapid economic development of our country,At the same time,it has also changed the way of China's economic development,improved the speed of economic development,improved the economic and technical level,and accelerated the process of China's economic internationalization.However,the failure of multi-dollar household management also illustrates the problems of the diversification strategy of Listed Companies in China.These problems,to some extent,are a great risk for enterprises and even the development of the national economy.Therefore,we devote ourselves to the study of the diversification risk of listed companies,with a view to properly circumvent the risks in the diversification process,help the listed companies to develop healthfully and stably.This paper analyzes the failure cases of music vision,which has a typical listed company's diversification.Through the case analysis,we verify the risk factors and the risk factors of the listed companies' diversification.The analysis shows that the limitation of overconfidence and understanding of the managers of listed companies affects the strategic decision of the enterprise.A blind extension of the business front and a high dependence on external financing,And unfounded access to capital demand,not high relevance to the original core industries,and unidentified industries and so on.The overexpansion cost of enterprises leads to low management efficiency in the process of diversification,So as to form the risk of strategic decision.Finally,based on the analysis of the reasons for the diversification of listed companies' risk,the risk prevention strategy of the listed companies in the process of diversification,For example,diversification needs to rely on clear objectives,make decisions based on scientific survey basis,and actively develop and maintain enterprise's core competitiveness and other risk prevention strategies.