Research On Diversification Of Listed Companies In China's Real Estate Industry

With the quick increase of China's population and economy,the real estate industry is developing rapidly.As an important economic support,the development of the real estate industry has attracted widespread concern of the community.How to realize efficient enterprise management to make the enterprise develop further,is a big problem that real estate industry managers are facing.Choosing and achieving diversified business model will help enterprises get further development.At the same time,as an important part of strategic management,diversification plays an irreplaceable key role in the development of enterprises.Therefore,it is necessary for us to explore a scientific diversified management mode to improve the efficiency of enterprise management,and how to improve the diversification management efficiency of listed real estate companies is an urgent task.The author makes a comparative study on more than 100 listed real estate companies in Shanghai and Shenzhen stock markets,so as to explore a more effective diversification management,and selects the 21 enterprises data to carry out empirical analysis,makes an intensive study on relationship between diversification of real estate enterprises and enterprise performance,in order to explore a more effective diversification of business management mode.The author found that in 10% of the level of capital structure and corporate performance is negatively related to capital structure and the company's operating performance of the correlation coefficient is-0.576.This may be due to the phenomenon of high raising rate of listed companies in China's real estate industry: in the course of business,more than ordinary levels of debt pressure makes the enterprise subject to interest and debt rate,thereby hindering the healthy and sustainable development of enterprises.Based on the empirical analysis,we further propose diversification development suggestions to improve the diversification mode and strategy of enterprises,including using their own core competitiveness to occupy the market share,addressing the relationship between diversity and unrelated diversity,controlling the timing,method and pace of diversification management,coordinating effectiveness of strategic management and so on.