As diversification strategy has become one of the important methods for enterprises continuing development and expansion, the research on the relationship between diversification strategy and enterprise performance has been a focus. In this paper, with theoretical and empirical research methods, the positive and negative economic effects of diversification strategy are summarized, and then with 50 listed diversified companies as sample, a linear regression model is framed to test the relationship between diversification strategy and enterprise performance. The result shows that higher diversification makes enterprises profit decrease, but there is not significant linear relationship between diversification degree and profit fluctuation and between diversification degree profit growth. Then, on the basis of the research results and the practical economic conditions of Chinese enterprises, effective ways for enterprise diversification are explored. At last, a conclusion for this paper is made and the further research is presented. |