Effects Of Diversified Strategic Of Resources Allocation On Corporation Performance

The diversified strategic, which is concerned by academia for long-term, is directly related to resource allocation, profitability and financial risk. Therefore, in order to maintain the better profitability in long-term, how to choose an appropriate diversification strategy and how to reasonably adjust diversification of resources allocation, have been increasingly concerned by domestic and foreign enterprises. As guiding principles of decision-making, enterprise development stage has a very important role on diversified strategic choice. However, current research focuses on the effect of diversified mode and causality on corporate performance, and it rarely considers lag of diversification strategy performance. Reasonable, effective and uniform interpretations have been not yet reached about the effect of diversified strategic of different development stages on corporate performance. Therefore, the paper, view from the resource allocation, studies the effect of diversified strategic on corporate performance and the differences in the different development stages.This paper chooses regression analysis, hypothesis testing and polynomial distributed lag (PDL) model and other empirical methods to study diversification strategy. And the paper explores the regulatory role of enterprise development stage by GMM and analyzes diversified performance in the different development stages.By theoretical analysis and empirical testing, we get the following findings. Focus level, the percentage of the revenue from the most outstanding business unit to the total revenue, is positively correlated with ROE and RGR in the early stage of resource configuration, but negatively with time extension. However, to the related diversification level, the percentage of the summed revenue from business units related for the core capability sharing to the total revenue, it is reversed to be negatively related with ROE when lags one year, but positively with time goes on. There is no significant relationship between the related diversification and RGR. The vertical diversification level, the percentage of summed revenue from businesses in the same value chain deducting those counterfeiting part, is positive with ROE in the long run. There shows no significant reverse of link between resource configuration and RGR over time. When business is in the growth stage, focus level is positively and significantly correlated with ROE; related diversification is negatively correlated with ROE; vertical diversification has no significant relationship with ROE. When business is in the mature stage, focus level is negatively and significantly correlated with ROE; related diversification is positively and significantly correlated with ROE; vertical diversification is positively correlated with ROE. When business is in the recession stage, focus level is positively correlated with ROE; related diversification and vertical diversification have no significant relationship with ROE.