Study On The Relationship Between Diversification And Performance Of Listed Media Companies In China

Diversification is the enterprise internal resources use efficiency,expand the scale and an important means to improve profitability,the enterprise in the process of industry development in western developed economies will be widely used,including related diversification and unrelated diversification,diversification strategy,diversified development to a certain stage and when there will be a return to the main business,namely,the trend of "refocusing strategy".Chinese media enterprises can be divided into traditional media and new media,and most of them are involved in diversified business areas.Due to the bottleneck in the development of traditional media,the audience resources are seized by new media.Traditional media choose the development strategy of non-related diversification as the leading strategy,trying to maintain the survival of enterprises through the profit gain of multi-industry operation,and make up for the financial gap caused by the decline of advertising and main business.Different from traditional media,new media have no restrictions on career attributes,and capital and technology are important internal resources of enterprises in the early stage of establishment.Therefore,most of them take core-competition oriented diversified operation as the primary development strategy of enterprises.The research on the relationship between diversification and performance has long been one of the important research contents in the theory of strategic management and industrial development.The theoretical system of diversification in European and American countries is based on the industrial practice of western developed countries.Based on this,scholars have carried out empirical research and come to different conclusions,such as diversification premium and diversification discount,which are still controversial.In fact,for enterprises in different economies or enterprises in different industries in the same economy,diversified operation may produce different performance.Therefore,when discussing diversified operation of media enterprises,we should not blindly refer to the existing conclusions of other economies or industries.Whether the relevant theories are applicable to Chinese media enterprises and whether the empirical conclusions can be directly introduced into the diversification theory system of China's media industry need to be based on the diversification practice of China's media enterprises and further verified bythe empirical results obtained from reasonable financial data,so as to provide theoretical basis for the business decisions of media enterprises.However,there are few empirical studies on the relationship between diversification and performance of media enterprises in China.Although the existing studies have filled the sample vacancy of the media industry in the theoretical system of diversification management in China,there are still many research defects.On the basis of sorting out the relationship between diversification and performance at home and abroad and diversification in the media industry,this study focuses on three aspects :(1)what is the status quo of diversification in China's media enterprises?(2)traditional media and new media tend to adopt non-related diversification and related diversification when adopting diversification strategy.What are the short-term and long-term effects of different types of diversification of traditional media and new media on corporate performance?(3)will the diversified development of media enterprises present a situation that the performance of specialization and high diversification is lower than that of moderate diversification? To what extent is diversification of traditional media and new media optimal for performance in the short and long term? In order to solve the above problems,this study integrated the subject knowledge of management,economics and communication,took 389 pieces of unbalanced panel data of 77 listed media companies in Shanghai and shenzhen stock markets from 2012 to 2017 as samples,used indicators such as Herfindahl index and Entropy index,and comprehensively used descriptive statistics,correlation analysis,multiple regression analysis and other methods for data analysis and hypothesis testing,and made an empirical analysis on the relationship between diversification and performance of listed media companies in China.This paper is divided into seven chapters.The first chapter is the introduction,which clarifies the research questions,research framework and research methods from the research origin.The second chapter is a literature review,reviewing and combing the theory of diversification,the empirical research on the relationship between diversification and performance,and the research on diversification and performance of media enterprises,so as to provide theoretical and research method support for the later empirical research.The third chapter is the empirical research design,which explains the research sample and variable design of this study and proposes the research hypothesis.The fourth chapter is adescriptive analysis of the diversification status of listed media companies in China,which presents the diversification status of media companies by using four variables: the dummy variable of diversification,the number of diversified business units,the Herfindahl index and Entropy index.The fifth chapter is the research on the relationship between diversification types and performance of listed media companies in China,and discusses the impact of relevant diversification and non-relevant diversification on short-term and long-term performance of traditional media companies and new media companies respectively.Chapter six studies the relationship between diversification degree and performance of listed media companies in China,verifies the relationship between diversification degree and performance of media companies,and calculates the reasonable boundary of diversification between traditional media and new media.The seventh chapter summarized the empirical research conclusion,and points out that the research and its prospect.The conclusions of this study are as follows :(1)it is quite common for listed media companies in China to carry out diversified management,and the degree of diversification of listed media companies is higher than that of listed companies in China.The overall degree of diversification of new media listed companies and the degree of related and non-related diversification are all lower than that of traditional media companies.(2)different types of diversification of listed media companies have different impacts on corporate performance.the traditional media is engaged in the related diversification can be funded in the short term,but in the long run,the use of unrelated diversification to survive at the same time,still have related diversification,on the cultural industry to build a complete value chain,aim to establish a cross-industry comprehensive cultural transmission group,in order to maintain the competitiveness of the traditional media and influence.at present,new media enterprises are only suitable for diversified operation based on core competitiveness.Non-diversified operation cannot improve short-term and long-term performance.(3)he degree of diversification has a reasonable boundary.Listed media companies should carry out diversified operations within a reasonable degree of diversification.(4)the government provides different policy support for different listed media companies.Empirical conclusion of this study is conducive to the diversification of media enterprises to choose reasonable path and workable competition in the marketstrategy,avoid blind multiplication expansion strategy,provides the decision-making basis for the transformation and upgrading of the media industry,the competitiveness of the enterprises to improve media has realistic guiding significance,also provide a reference for the government guide the media industry management policy.