Research On The Impact Of Diversification On Financial Risk From The Perspective Of Slack Resources

The development of China’s capital market has provided a growth environment for diversified operation,and expanded businesses such as mergers and acquisitions have also shown a strong momentum of explosive growth.However,in recent years,many large domestic enterprises have experienced varying degrees of difficulties in the process of diversification,and even some enterprises are facing the situation of bankruptcy and reorganization.The risk problems brought by diversification are particularly prominent.At present,China is in the period of economic transformation,and how to steadily promote the transformation of old and new kinetic energy needs to be solved.In order to further explore how to deal with the possible negative impact of diversification on financial risks,the perspective of slack resources was selected based on resource-based theory,and excavates the key to the success of diversification from the internal conditions of enterprises.The research method of combining normative analysis and empirical analysis is adopted,which theoretically analyzes the specific impact path of diversification on enterprise financial risk,analyzes in detail the mechanism of the regulation and threshold effect of different types of slack resources(available slack resources,potential slack resources and recoverable slack resources)on the relationship between diversification and financial risk from both static and dynamic aspects,and makes an empirical analysis by using the balanced panel data of Shanghai and Shenzhen A-share listed companies from 2013 to 2020.From the regression results,it can be found that on the whole,diversification will increase the financial risk of enterprises,and recoverable slack resources will aggravate the negative impact,but the existence of available slack resources and potential slack resources will alleviate the negative impact.When the amount of slack resources changes dynamically,the relationship between diversification and financial risk will also have structural mutations,that is,when the slack resources exceed a certain threshold,the aggravating effect of diversification on financial risk will be significantly greater than when they do not exceed the threshold,and this trend will appear for different types of slack resources.This research gives corresponding suggestions for the follow-up theoretical research and may open the research field of vision.Meanwhile,it also provides reference suggestions for enterprise strategic choice,resource allocation and risk management,which may have partly enlightenment to enterprise practice.