Enterprises Diversification Is The Financial Impact

In recent years, diversified operating management of business enterprise has been animportant topic in the research field of theory and the business enterprise cycles. Up tonow, there are two kinds of totally different standpoints. One kind of standpoint thinksthat making use of the present resources to develop diversified management can evadethe risk, carry out the resources share, produce synergy effect, and is a necessarydevelopment road of modern business enterprise; While another kind of standpointthink the business enterprise practice diversified management will result in resourcesdecentralization in human, property, materials, etc. The increment of managementdifficulty and the descending of managerial efficiency. In fact, it is not lying in theproblem of diversified strategy itself but at analyzing the problem whether businessenterprise chooses proper diversification occasion, route and method under facingexternal environment and the business enterprise's own advantage.This article appliesmodern management theories combined with the finance theories to analyze the occasionand choosing of diversification with Chinese business enterprise; Meanwhile, it analyzesthe incentive and status quo of diversification in Chinese business enterprise. Finally theauthor gives a statistical analyze to the listed companies with from finance data of theselisted companies and draws a positive conclusion that the mixed diversification at presentin Chinese business enterprise has increased the financial risks of the enterprise.