Institutional Investors, Diversification And Corpotate Performance Research

"Whether diversification can improve the performance of the company?" This issue has been the academic and industrial circles paid attention. Although the current has not yet formed a consistent conclusion, but more and more research found that diversification will cause the performance of the company’s discount, the enterprises of western countries gradually from diversification to return to specialization. Whether diversification in our country can improve firm performance or does some damage to value? Based on the domestic and foreign research, explores the relationship between diversification and corporate performance, and has carried on the simple analysis. The diversification strategy as an important area of corporate governance.In recent years, with the rapid expansion of the number and size of China’s institutional investors, institutional investors holding as an important factor in corporate governance in the enterprise of the position is becoming more and more important. Therefore, this paper mainly studies the impact of diversification on the performance of the company, and the moderating effect of institutional investors on this influence.This paper based on the 2012-2014 listed in Shanghai and Shenzhen two A shares of listing Corporation as research sample. First, we study the relationship between diversification and performance of the company’s. Secondly, based on the study of the relationship between diversification and corporate performance, the adding of institutional investors holding will affect performance of diversification. Then, come to the conclusion:China’s corporate diversification and corporate performance is a significant negative correlation, namely the diversification will bring effect at a discount. While institutional especially independent institutional investors can significantly exert their effect on corporate governance, change the diversification performance "discount". Finally, in view of the above research conclusion, the diversification of the company in our country to return to the main industry, cultivating core competence, choose suitable for their own industry diversification, and put forward the developing institutional investors and strengthen the education and supervision of their advice.