Real Estate Enterprise Multiplication Management Achievements Empirical Study

Diversification is an effective way to divide the risks of business and avoid excessive competitions,but also a certain choice with the enterprise's development, When begin to operate it and how to perform it are always the focus of the theory and the business research.As the real estate market's downturn and an increasingly competitive market situation,the real estate business's operating environment and functions have changed a lot,in order to avoid the risks,and expand the sources of earnings,some real estate enterprises have also began to attempt the diversification. ShouChuang start the 532 plan which related the diversification,GuangDa has paid more energies on the transportation,BiGuiYuan begin to take on the entertainment and so on......Which all bring a lot changes and the significant impact to the real estate industry and many real estate enterprises have also began to take the multi-strategy planning.In the view of the depth adjustment of the real estate industry,the current situation of our real estate enterprises'diversification and what has brought to the real estate enterprises by the diversification,whether China's real estate business is suitable for diversification or not,how to operate the diversification effectively and so on,Some problems like that have aroused the concern of the author.This paper first introduces the basic theory of the diversification and the evaluation on the performance of the enterprise;a wide range of positive and negative effects which it brings;then analysis the thread of Chinese real estate business and China's real estate business characteristics; finally discussed the advantages and disadvantages of the diversification,and take some empirical research on the relationship between the estate enterprises'performance and the diversification.In the empirical analysis,we chose 50 real estate companies as the research object, took the 05-07 annual financial reports to estimate the financial performance of the e enterprises,then used the relevance theory to build a empirical model to evaluate the impact of the diversification,and took the mean and regression analysis to express the exact degree of diversification and performance analysis,the impact when the enterprises took some real estate related business.Meanwhile,considered the different impacts between the big enterprises and smaller enterprises.Finally,summing up the results of empirical analysis and give some advises to the current real estate companies.