An Empirical Research Of The Diversification's Influence On The Corporate Value

In 1980s, the diversification strategy stepped into China. From then on, more and more entrepreneurs kept one eye on this issue and tried to experience this new strategy. Unfortunately, someone succeeded and someone failed. The diversification strategy once was promoted and adopted by lots of companies in the world. But with the elapsing of time, the going forward of the society and the environment changing of the inside and outside, people began to doubt the diversification strategy and the voice spread very fast.In our country, there are a number of listed companies are putting the diversification strategy into effect. The performance of the above firms is closely related to the stable development of our economy and the realization of our Nation's strategy. No doubt, the question of whether and how the diversification strategy could influence the performance of those companies using that strategy deserves further research. "Does corporate diversification create firm performance?" This issue has caused wide public concern all over the world. Although theorists have not reached consistent results, more and more research found that diversification results in a decrease in performance. As the facts shown, in USA, Japan, Korea and many other developed countries, there is a trend indicating the regression from diversification to specialization. Whether diversification in our country can improve or deprove firm performance? Based on the Western research and the practice in China, I try developing empirical approach to study diversification's effect on firm performance in China's securities market and try to find the reasons that can explain it properly.This paper the introduction part includes background of setting up question and research meaning, domestic and international research current situation, the contents of research, research approach。Then initially makes the definition and type of diversification, and sums up the motive and influential factors of diversification, and makes a review of relevant papers and documents to conduct a theoretical analysis of the relationship between diversification and company performance. The second part is a literature review of diversification strategy. In this part, we review the diversification theory, including the concept, the classification and the motivation of diversification strategy. Then we do a literature review of the research on the relationship between diversification strategy and firm performance. We review the foreign and domestic scholar's research separately. In its 50 years'history, the researches on this topic drew several different conclusions, and they are even conflict to each other. The third part is a basic frame of this paper, define the diversification relation and corporate achievement, in order to meet the need of practical analysis, and assume the part of regression analysis,make according models, and carried on the brief explanation to the collection of the sample data and arrangement situation. According to the quantization of diversification degree,diversification relation and corporate achievement, adopt the method of regression analysis and correlate analysis, carry on more comprehensive practical analysis to diversification performance of industrial listed company of our country. The fourth part is solutions of promoting, Manage solution guidance to the industrial enterprise diversification of our country, and summary relevant research conclusion of this paper. the author presents the explanation of the conclusion and gives some suggestions of key points of implementing the diversification strategy in China. Hopefully, the article could be helpful to China's enterprises.