Research On The Relationship Between Diversification Strategy And Performance Of Listed Private Real Estate Enterprises

The real estate industry is an important pillar industry,which not only directly affects the national economy and the people's livelihood,but also relates to the sustainable development of regional economy and the demand of people's housing.However,after 20 years of rapid development in China's real estate industry,as well as the continuous increase in the state of the state to the control of the real estate industry,the development space and operating profit are gradually decreasing,and the business risk is gradually increasing,which has also prompted the more and more real estate enterprises to seek transformation and upgrading,To diversify the path of development.However,the implementation of the real estate enterprise diversification strategy,whether the long-term development of enterprises is good or bad?What is the impact of diversification strategy on real estate performance? With the above problems,the paper deeply discusses the current situation of the implementation of the diversification strategy of real estate enterprises in China and empirically studies the relationship between the diversification strategy and the performance of the real estate enterprises.The paper takes the diversification strategy of listed private real estate enterprises as the research object.First,it discusses the related theories of the diversification strategy of real estate enterprises,including the concept,type and positive and negative effect of diversification strategy.Secondly,combining with the current situation of China's real estate diversification strategy implementation,it puts forward the correlation hypothesis of the diversification strategy and the performance indexes of real estate enterprises;third,based on Shanghai and Shenzhen.With a large number of sample data of the private real estate companies listed in the stock market,this paper makes an empirical study on the correlation between the diversification strategy and the performance of the real estate enterprises by using a variety of data analysis techniques.Finally,the success and reasons of the diversification strategy are analyzed from the successful case of the diversification strategy of the real estate enterprises in China.In this regard,we put forward pertinent suggestions for China's private enterprises to implement diversification strategy.Through the study of this paper,we hope to further enrich and improve the theoretical research on the diversification strategy of enterprises,and can play a certain reference and inspiration for the implementation of the diversification strategy of real estate entrepreneurs in China.The main research conclusions of this paper include:(1)during the 2014-2016 years,the listed private real estate enterprises in China have adopted a diversified business strategy,accounting for about 2/3 of the total number of enterprises,and the listed private real estate enterprises are in the following order: commercial real estate,service industry and Hotel in turn.Industry,chain stores and sports culture industry;(2)the concrete correlation between the diversification strategy and the performance of the listed private real estate enterprises is empirically studied in combination with the data of listed enterprises.There is a positive impact on the performance of the private real estate enterprises in China,and the non related diversification has a negative impact on the performance.(3)from the typical cases,this paper analyzes the reasons for the successful implementation of the diversification strategy,and puts forward some suggestions on the implementation of the diversification strategy of private real estate enterprises in China,including the selection of the diversification strategy,the choice of the target industry,the control of the speed of development,and the prevention strategy of reducing the efficiency of the operation.And implement comprehensive cost management,strengthen cash flow management,improve financial management by means of information technology,etc.