Empirical Studies On Factors Affecting Cross-industry Transformation And Transformation Performance Of The Listed Company In China

Cross-industry transformation is the most dramatic form of enterprise change.In recent years, with the surge and wide spread of globalization and the emergence of new economy, the characteristics and environments of enterprise operation have been changing deeply. In order to adapt to this change, more and more enterprises are on the way to make cross-industry transformation initiatively or passively. The history of China's listed companies is only a short period of 30 years, but has showed a great richness, there has been a considerable number of companies that implemented cross-industry transformation in last ten years, or intended to make cross-industry transformation, or have been on the way of transformation. Therefore, the study on cross-industry transformation of China's listed companies has a positive meaning.On the basis of the existing research results, this paper studies on the content of cross-industry transformation and decision, factors affecting the cross-industry transformation and performance systematically, hoping to provide a reference for the cross-industry transformation of China's enterprises. The results showed that: ROE, the average asset size and the profit margins of the exiting industry are the factors affecting the cross-industry transformation.The three have a strong negative correlation with cross-industry transformation. In other words, When having poor profit in the original industry, the companies tend to choose cross-industry transformation; If the profit margins of the exiting industry is higher, the companies generally will not choose to exit; The average asset size of the exiting industry have negative impact on cross-industry transformation. Cross-industry transformation companies have better performance after than before and in general cross-industry transformation companies have better performance than non-cross-industry transformation companies.Attention:although the cross-industry transformation can improve the performance in general,but if companies don't take full account of the factors affecting the cross-industry transformation, cross-industry transformation will not only fail to improve performance, but also accelerate the decline of companies.