Diversification And Corporate Performance Of Listed Companies In China Based On The Degree Of Political Relations

The1920s, diversified business strategy is widely used and is highly valued. But for enterprise implement diversified motivation, there are many theoretical explanations from different research Angle. Chinese and western academic circles may come to different conclusions. Our country of the transition of the economic environment and the developed market economy country exists between the larger market and system differences, different places system development degree is different.Although the market mechanism in the allocation of resources plays a certain role in system environment development backward area, resource mainly depends on the government configuration, but to the enterprise diversification strategic decision have a significant impact. Political relations represents a unique type of management resources, they in promoting enterprise to receive government scarce resources to achieve the diversification play an important role. Based on this, this article attempts from the political perspective correlation, and combining with China’s economic transition background characteristics, the thorough research in different situations, political related degree to the pluralism and enterprise performance between the influence of related to explore diversification strategy and enterprise performance in the political correlation between the intermediary role,to further explain political correlation degree, diversified strategy and enterprise performance between the inner mechanism.This paper selects out of Shanghai and shenzhen in the listed companies238listed companies as the sample, the state-owned shares in different proportion and system environment, constructing the relation model to carry on the political relevance on diversification strategy, political related degree to enterprise performance empirical analysis, draw the following conclusion:(1) political relevance to promote enterprises to implement the related diversification;(2) the higher proportion of state-owned holding, political related degree to the listed company not related diversification more influence degree;(3) political correlation degree and the listed company performance positive correlation;(4) the proportion of state-owned shares held high and low system environment relative to the high system environment, political related degree to the listed company performance influence more;(5) political correlation degree through the kochan produce pour "U" type influence. These conclusions further explain why diversification strategy can improve the value of the enterprise, for in different situation background company diversification strategy decision and implementation provides some revelation.