The Impact Of Diversification On The Performance Of Listed Forestry Enterprises

In the process of industrial restructuring,diversification has been adopted by many enterprises due to its universal applicability.As the leading enterprises in the forestry industry,listed forestry enterprises are in the stage of high-quality economic growth and have deeper demands for diversified operation.Diversification can effectively solve the problems of enterprise operation and improve the performance and competitiveness of enterprises.However,there are some factors in the process of implementing diversification,which affect the effect of diversification in listed forestry enterprises.Against the background of the common use of diversification strategies by forestry enterprises,this paper discusses the motives of diversification,using principal-agent theory,asset portfolio theory,transaction cost theory and institutional foundation theory to discuss the motivation of diversification,and theoretically analyses the impact of diversification on foresty listed enterprises’ performance and the moderating role of R&D investment between them.In further research,we divide diversification into two aspects: the degree of diversification and the type of diversification,the type of diversification includes relevant diversification and nonrelevant diversification,and verifies the effect of each indicator on enterprise performance through multiple regression analysis.From the overall regression,the higher the degree of diversification,the worse the performance,the higher the degree of non-correlated diversification,the worse the performance,and the positive relationship between correlated diversification and enterprise performance.In the analysis of the moderating effect of R&D investment on the degree and type of diversification on corporate performance,it is found that R&D investment plays a negative moderating role in the negative effect of the degree of diversification on corporate performance,a positive moderating role in the positive effect of correlated diversification on corporate performance,and a negative moderating role in the negative effect of uncorrelated diversification on corporate performance.Based on the results of the theoretical analysis and empirical research on the relationship between diversification and corporate performance of listed forestry enterprises,puting forward reasonable suggestions for using diversification to improve corporate performance.