Empirical Analysis Of The Relationship Between Diversification And Company Performance

When companies develop to a certain degree, diversification strategy becomes one of the most important problems of the enterprises. For developed countries, they began to study the subject from the 20's century, and have got some conclusion already. Scholars of our country began to research this subject in the 1980s. Because of the differences of market and research methods, there are some differences among the conclusion. The developed countries have already moved from carrying out diversification strategy to specialization strategy. Domestic listed companies have developed right towards the diversification. On this basis, the thesis, using the methods from abroad and home and combining the present market of our country, gives the relationship research between the diversification and performance of the listed companies in our country.In the part of research review, the article recollects the past empirical study on the relationship between diversification and company performance and then files them in groups with different results.In the second part, the definition and the category of diversification are introduced and then the causes of diversification for companies are analyzed. As well, the theories related to the relationship between diversification and company performance are collected.In the chapter of empirical study,398 listed companies are elected as research subjects. Then the relationship between diversification and company performance is analyzed through the methods of descriptive statistics and OLS. As well, some conclusions concerned about company performance are obtained in this part.Then, based on the results obtained, the conclusions are further analyzed, and then some advises and considerations are proposed. At the same time, the flaws of the article and the following direction of the study are given.