The Relationship Between Diversification, Technological Innovation Investment And Corporate Performance

For Chinese Growth Enterprise Market listed companies, to improve their corporate performance, and to set up a reasonable strategy of diversification, and to establish technology innovation investment policies are very important. This paper chooses Chinese Growth Enterprise Market listed companies as research subject, and builds a "diversification strategy, technology innovation investment, and corporate performance" research system, and conducts empirical analysis on companies’ data from the year of 2012 to the year of 2013 to explore the relationship between diversification and technological innovation investment, and the influence of diversification and technological innovation investment on corporate performance. In the research of technology innovation investment, this paper not only considers R&D capital investment, but also considers technical staff input. While in the research on corporate performance, this paper not only considers the financial performance, but also considers the market performance, which makes the research more comprehensive.Through empirical study, this paper obtained following results:(1) Chinese Growth Enterprise Market listed companies’strategy of diversification can promote the strength of technology innovation investment:along with the improvement of the level of diversification, the intensity of R&D investment and technical staff input also increased. (2) The current financial performance of Chinese Growth Enterprise Market listed companies is falling with the improvement of the intensity of R&D investment. But the current financial performance of Chinese Growth Enterprise Market listed companies is rising with the improvement of the intensity of technical staff input. (3) The current market performance of Chinese Growth Enterprise Market listed companies is rising with the improvement of the intensity of R&D investment. While there is no significant positive correlation between current market performance and technical staff input. (4) There is no significant negative correlation between diversification and corporate performance in Chinese Growth Enterprise Market listed companies.