The Study On The Financial Impact Of Different Types Of Corporate Diversification

The United States in the 1960s to the mid-1970s's multiplex merger and acquisition tide, has pushed the enterprise multiplication business model's choice to the climax.However, entering the 1980s, many large enterprises have disintegrated due to poor performance, make more and more enterprise began to focus on core competence, and gradually for refocusing. Diversification suffered the question in the Western developed country, while our country has set off a wave of diverse business boom, almost any heat on what to do, what to make money on what projects, but the performance is difficult to obtain satisfactory at best only temporary glory. Although diversification gets down slightly and cold slowly in recent years, slow down a little cold, the phenomenon of diversification in Listed enterprise is still very common.In order to better understand and use of the enterprise diversification strategy, foreign scholars have done a lot of theoretical research and empirical testing, from diversified motivation to the impact of diversification have been done research, but still do not get consistent conclusion. Our country was still in the transition period at present, with the developed country in the market system, the environment of competition and so on many factors exists greatly different, the overseas research results are not possibly suitable for our country. Domestic scholars on corporate diversification research began in the 1990s, empirical research began in the late 1990s, the results achieved so far is still small, the conclusions which obtained is also inconsistent. For better completes the theory to serve the practice, provides useful reference and inspiration for the diversification management's enterprise, this article from four aspects of interpretation on the impact of diversification business's performance, capital structure, executive compensation and business risk have important theoretical significance and practical value.The frame of this thesis is as follows. First, we analyze the current situation of our country diversification, introducing this article selected topic background and the research significance. Secondly, we carry on the summary from domestic and international research on diversified motivation and the impact of diversification. Third, introduce the theoretical basis, which is the fundamental basis of this study, according to the theory put forward hypotheses, set the variables for the back of the empirical research to prepare. Fourth, our research hypothesis, we selected the sample of what we need, and carries on the descriptive statistics to the sample. We are able to have a certain understanding of diversification on the whole. Fifth, we will carry on correlation tests on Explanatory variables and the explained variables to determine correlational dependence of the both. Sixth, through the empirical test methods to determine the effects of diversification, this is the core part of this thesis. Seventh, through regression results we can find the impact of corporate diversification, understand the motivation of diversification, which will give inspiration to us about diversification and how to diversify. Finally, the thesis is to show the shortage, and provides direction for further research.The innovation of this thesis is as follows; First, the different enterprises diversification motive is different, the impact of diversity is different, this thesis divides into the enterprises four kinds to carry on the research, could the better explanation enterprises diversification motive, simultaneously also can explain why the study of diversity in different of the findings are inconsistent. Second, this thesis uses the different financial norms to weigh the diversity motive, more benefit at the comparison and research; Third, had considered in the sample selection process the diversity influence's time effect, the selection sample has more representation, the conclusion has more reliability.This article mainly involves research methods are standard and empirical research methods. Standard research method is mainly used in this thesis to study the diversification of the domestic and foreign literature review and theoretical analysis section. Empirical research methods in Part VI of this article, we used the SPSS 18.0 to carry on the multi-dimensional linear regression to the selected of samples to find the financial impact of diversification.We discovered through the empirical study:(1) For equity concentration of large enterprises, the degree of diversification and corporate performance is significantly negatively correlated, with the business risk is significantly negatively correlated, this thesis can not find significant relationship between diversified degree and the capital structure and executive pay. This shows that equity concentration of large enterprises diversification can reduce the enterprise performance and diverse business risk.(2) For equity scattered of large enterprises, we found that the degree of diversification and firm performance is significantly negatively correlated, with the capital structure is significantly negatively correlated, this thesis can not find significant relationship between diversified degree and executive pay and business risk, which confirm the equity scattered of big enterprise diversification reduces the enterprise performance, and establish the internal capital markets make the enterprise to the capital structure of the decline.(3) For equity concentration of small and medium-sized enterprises, we only found diversified degree and business risk is significantly negatively correlated, for another three indicators we found no significant relationship, which suggest equity concentration of small and medium-sized enterprises diversification diverse business risk.(4) For equity of small and medium-sized enterprises, scattered, we didn't find the significantly correlated between diversified degree and four index.