Research On Factors Of Diversification Strategy's Performance Of Textile Listed Companies In China

Looking at the world history of the development of large companies, most companies are using different levels of diversification of development models to grow up. Since the 1990, Chinese enterprises have developed considerably in diversification; whether the extent of the company diversified company or the proportion of firms engaged in diversified business have a larger increase. Diversified as a major enterprise development strategy, it should be how to improve the diversification of business performance? What are the factors affecting the performance of diversified? To identify these important factors, enterprises can control and make use of to enable them to play an active role in enhancing the performance of diversification.Textiles and clothing is one of the most basic needs for human survival, which is related to the basic industry of China's people's livelihood. In this article ,author seriously analyzed the theories related to diversified business performance and its influencing factors , and analyzed and described the actuality of both industry and diversification strategy. Then, this paper constructed a multiple linear regression model, using data from China's textile and garment industry companies to do empirical analysis on the diversification performance of the main factors. The results show that higher than the inflow and outflow of cash from operating activities, the total asset turnover and diversification of higher business performance significantly correlated, diversification of the company's overall operating performance was negatively correlated with the degree of the extent of the relevance of diversification and performance are related to. In the end ,the Countermeasures for diversification strategy and the conclusion were given out.