Research On The Correlation Between Business Diversification And Business Performance Of Asset Appraisal Institutions

With the reform and opening up more deepen and the economic activities more various,the demand of legal businesses for appraisal institution deceases,while the demand of consulting businesses increases.The business sphere of appraisal institutions develops and more and more appraisal institutions start their business diversification.However,the question that if the diversification and performance is related and what the relation will be like if the relation exists.Few scholar conducts research involving the question and the study is inconclusive.This paper focuses on the link between diversification and performance.It conjectures that the diversification improves performance by reviewing literature,confining diversification and performance for appraisal institution,which shows the appraisal institution has the diversification motive.Combining the features of appraisal industry and the current situation of appraisal institutions in Beijing,it puts forward the hypothesis that diversification positively influences the performance.The conclusion that diversification is irrelative with performance is verified by the regression analysis on panel data sampling of 35 appraisal institutions in Beijing during 2010 to 2013.The reason that the theoretical analysis and empirical analysis contradict might be the appraisal institution hasn't start diversification thoroughly,leading to the influence unobservant.At the end,it provides suggestions for appraisal diversification which is possibly practiced in the future.