The Drivers And Economic Consequences Of Corporate Diversification Strategies

At present,the trend of economic globalization is irresistible,and the exchange and connection of global capital,technology and trade are becoming more and more intensive.With the rapid development of information technology,the global economy has gradually become an interdependent and inseparable whole.Based on this background,China’s Internet industry enterprises have carried out diversified expansion,trying to seek development opportunities outside the main business,in order to expand the income channels of enterprises,reduce business risks,and realize the sustainable development of enterprises.Based on the relevant literature and theory,combined with the development of Sanqi mutual entertainment,this paper uses pest,SWOT and Porter’s five force model to analyze the motivation of Sanqi mutual Entertainment’s diversification Risk control is the core reason for the diversification of Sanqi mutual entertainment.This paper mainly evaluates the economic consequences of the diversification from three dimensions: short-term performance,long-term performance and risk control.The short-term performance adopts the event research method,and evaluates the abnormal return rate in the short-term market performance through AR and car;The long-term financial performance is evaluated from the perspective of profitability and growth by accounting index method;In the dimension of risk control,cash flow and Z value are used to measure the financial risk.From the perspective of diversified economic consequences,the performance of Sanqi mutual entertainment is the rise of the stock price of the enterprise,and the profitability,growth ability and risk control ability of the enterprise have been steadily improved.The research results can provide an effective development path for other listed companies in the Internet industry,and provide a reference for their research implementation effect.