The Vertical Scale Of The Economic Performance Of The Relationship Between Research,

About the relationship between Enterprise Scale and the Economic Performance, scholars have a debate with no consensus for a long time. Scholar Yuanzhi Zhang, Mingxiao Ma proposed that size of enterprise can be divided into horizontal and vertical scale and provides a new path for the study of the relationship between Enterprise Scale and economic performance, and put forward the theory conjecture of Diseconomies of Vertical Scale. In this paper, we analysis if the vertical scale of enterprise and economic performance is a negative correlation relationship through the New York Stock Exchange listed company's annual report data. In this paper, we use the the Average Stock Price Appreciation Rate of listed companies as a measure of Economic Performance, with the number of Business Segments and the Weighted Cross-Industry as a measure of Vertical Scale indicator. In this Paper, four theoretical propositions to be tested:the number of Business Segment and he Rate of Average Stock Price Appreciation is negative relation; The number of Weighted Cross-Industry and the Rate of Average Stock Price Appreciation is a negative relation; The Rate of Business Segment Change and the Rate of Average Stock Price Appreciation is negative correlation; The Rate of Cross-Industry Change and the Rate of Average Stock Price Appreciation is negative correlation. The empirical analysis indicate theoretical propositions have been tested and support the theory conjecture of Diseconomies of Vertical Scale, that is, the greater the company's Vertical Scale, the worse the Economic Performance; the smaller the company's Vertical Scale, the better the economic performance.