The Research For Diversification Performance And Motivation Of China’s Private Listed Companies

Diversification is an important strategic of business development and growth. Sincethe phenomenon of diversification appearance, the research on corporate diversification bya variety of domestic and foreign scholars has never stopped. In recent years, thedevelopment speed of China’s private economy continuous improvement, has become anincreasingly important part of China’s national economy. The proportion of private listedcompanies in China’s securities market is also growing, which diversify the business of afew. In this context, the overall performance of China’s private listed companydiversification in the end how to choose diversification motives to promote thedevelopment of private enterprises has important theoretical and practical significance.Therefore, China’s private listed companies for the sample studied the impact ofdiversification of its economic performance, and on this basis, the empirical analysis tochoose the right motivation theory of diversification of its diversified expansion.In accordance with the observation of economic phenomena, ask questions-Literature Review-An Empirical Test-Conclusions and recommendations logical clues toarrange the overall ideas and articles content. Specific to the idea of empirical research,this paper first to test performance on the diversification of China’s private listedcompanies, according to the specific economic consequences of the diversificationbehavior of diversification move because of the theory to empirical analysis, the twoempirical conclusions combined with the diversification of moving the root causes of poorbusiness performance analysis of diversification.The final conclusions of this paper are: First, the diversification of China’s privatelisted companies operating damage corporate performance; Second, the controllingshareholder agency theory of diversification expansion of China’s private listed companiesthe strongest explanatory power; Third, because the controlling shareholderproxy existenceof the phenomenon, coupled with China’s private listed companies internal oversightmechanisms is incomplete, and diversification to become the controlling shareholder of"tunneling" means, ultimately damaging the company’s performance.