An Empirical Study Of The Diversification And The Listed Energy Corporate Performance

The Research of " The relationship between diversification and firm performance"has been a common concern at home and abroad in the academic and industrial circles,and an important topic in the field of strategic management, industrial economics,financial management and so on.But up to now has not formed a consistent conclusion, China research on thisaspect began in the late90’s of the20th century, and just the direct relationship in allindustry,mainly focus on specific industry, lack of study on a specific industry,especially in this research related to people’s livelihood energy industry in terms ofthe little China’s energy industry. In order to provide more theoretical reference, thispaper especially studies the relationship between diversification and performance ofenergy industry in china.Based on the elaboration of domestic and foreign research status of enterprisediversification theory, and analysis of the relationship between China’s energydiversification motivation and energy diversification and corporate performance, andwith the operation data of China’s energy industry of54A shares listed enterprises2007-2011as sample, using the described correlation analysis, regression analysis,comparing analysis method.Through the above research find that China’s energy diversification degree isgenerally high, and state-owned enterprises accounted for the highest ratio, the degreeof diversification; Generally the higher the degree of diversification the worse ofperformance, the worse the performance of non-correlation between highercorrelation with firm performance relationship is not obvious.Analysis of variance in the degree of diversification of different types and Tobin’sQ, we found the best performance of specific enterprises, there is no significantdifference between low and highly diversified business performance; while in the case of varying the proportion of main business combination related and non-relatedentropy entropy index found: diversity brings different types of performance are notthe same effect, which dominated the best performance-related enterprises, better thanthe specific type and leading non-associated type; followed by the main businessaccounting for less than80%of non-business related diversification than relateddiversification types of enterprises.According to the results of theoretical analysis and empirical study of energydiversification and performance relationship, this paper presents the energycompanies should actively cultivate their core competitiveness, give full pay to theadvantages of leading businesses; clear competitive advantage in the case of the firstconsideration related diversification strategy; the competitive advantage is notobvious situation can be engaged in non-related diversification strategy.Meanwhile, the article pointed out that the conclusion of this study and the lack ofprospects, provide reference for future research.