Study Diversified Business Model And Corporate Performance Of Listed Chinese Steel Companies

Steel enterprises are the main part of Chinese pillar industry, so public response has been paying attention to the sustainable development of steel enterprises. At present, the diversification phenomenon exists in Chinese large and medium-sized steel enterprises generally. The investigators did not reach a consensus on the relationship between diversification and enterprise performance; there were also obvious differences in the conclusions of samples from different industries. Whether the diversified model can enhance the performance of an enterprise or not? What the challenges will be brought by the diversification? How to make diversification effective? The discussion of these questions will have great influence on the future development of Chinese steel enterprises. This paper tests the relationship between diversification and performance of Chinese listed steel enterprises on Shenzhen Stock Exchange and Shanghai Stock Exchange by means of regression analysis and ANOVA, and makes recommendations to make effective implementation of diversification for the future development of steel enterprises. It has five parts:The first part:it introduces the theoretical and practical significance of research background and research content; the methods have been used in the reach process and main content; the innovation of the research in this paper.The second part:it defines the main concepts related to in the research (diversification, enterprise performance, diversification of steel enterprises), and reviews the domestic and foreign literatures about diversification and enterprise performance, and domestic literatures about diversification and enterprise performance of steel enterprises.The third part:it elaborates the related theory of diversification, discusses how the model of diversification impact on enterprise performance through positive and negative aspects. In another words, it means the motivation of an enterprise choose the diversification or not.The fourth part:it shows the empirical study of the relationship between diversification and enterprise performance of Chinese listed steel enterprises through regression analysis and ANOVA by using the data of23listed steel companies in China during four years (2008-2011) as the research samples. Through the collation, calculation of data and analysis of the SPSS, the paper concludes as:there’s a positive correlation between the degree of diversification and performance of listed steel enterprises; there is a significant difference exists in the performance of different types of diversification which the listed steel enterprises used. The performance of related diversification enterprises is better than the unitary type and governance, and the performance of unitary type better than governance type.The fifth part:it expounds the empirical research conclusions of listed steel enterprises on the relationship between diversification and enterprise performance, and makes recommendations for steel enterprises on industry select, core-competence construction, governance structure, etc.