An Empirical Analysis On Diversification Performance Of Road Transport Enterprises

From the diversification wave of the USA in 1950s to the initial development of diversification enterprises of China in 1980s, whether the diversification can increase the performance of the enterprise has always caused wide public concern all over the world. Some enterprises are known to the world through the diversification, like China's Haier, Some enterprises get into the trouble, like Giant Group. Therefore, the diversification has caused a lot of controversy, but no clear conclusions so far.Due to the scarcity of road transport resources and the existence of economies of scale, through long-term management of natural monopoly, the road transport enterprise has accumulated a large number of economic strength for its diversification. So the road transport enterprises took the diversification strategy like other enterprises in other industries. However, it found that few scholars have engaged in the theoretical and empirical research on whether the road transport enterprise with the common characteristics is suitable for diversification. So, how is the diversification degree of the road transport enterprises in China? What kind of impact the diversification on the performance and development of enterprises? That is the core of this paper.The paper makes an empirical study of the relationship between diversification and performance through road transport listed enterprises data. The main contents are as follows: First, summarize a wide range of related theories at home and abroad, especially for the research on the relationship between diversification and performance. And review the diversification history of typical countries. Second, summarize the operating status through defining the scope of diversification of road transport listed enterprises, and make a preliminary study of theoretical conditions for the feasibility of diversification. Third, based on the analysis of related theories and operating status, this part makes use of descriptive statistics, correlation analysis and regression analysis through the establishment of the regression model. And do an empirical analysis and test about the implementation effect of diversification strategy.Theoretical and empirical research results show that the diversification degree has a tendency to expand in the future although it is not too high at present. At the same time, because of the diversification conditions are not ripe for the road transport listed enterprises, diversified operation strategy has resulted in no significant negative impact on the performance of enterprises. Therefore, road transport listed enterprises in China should take cautious approach to diversified operation strategy.