Research On The Impact Of Evergrande Group's Diversified Operations On Corporate Financial Performance

Since the 1980 s,many foreign scholars have begun to study the diversified management of listed companies,focusing on the impact of diversified strategic investment on corporate performance.Especially when the real estate company is in a downturn,how to effectively implement the diversification of real estate companies and how to improve the financial performance through the diversified layout is related to the survival of the company.Evergrande Group has developed rapidly in recent years,and the diversified industries have been separated and listed.Therefore,this article selects it as a case study object,and through the analysis of the financial performance of diversified operations,puts forward relevant suggestions.This article first studies the relevant literature on diversification and elaborates the relevant theories;secondly,it introduces the basic situation of the diversified operation of Evergrande Group,and introduces the process and motivation of diversification;the next is the financial performance of diversification Analysis,using the event research method,taking the merger and acquisition time or the development of a diversified industry announcement day as the event day,analyzing the short-term impact on the financial performance of the company by calculating the excess return rate and the cumulative excess return rate,using the financial index analysis method A single indicator analysis was performed from four aspects of profit,debt repayment,operation and development capabilities,and a data envelope method was introduced to comprehensively analyze the financial performance of the enterprise.Research shows that Evergrande's use of corporate funds has increased during the process of diversified development,but excessive liquidity investment by diversification has reduced the company's ability to repay debts.Overall,diversified operations have significantly improved profitability and development capabilities.To improve debt service and operational capabilities,efforts must be made to optimize capital structure,strengthen cost management,and improve inefficient enterprises,so that diversification can play a greater role and further improve the financial performance of enterprises.