Research On The Correlation Between The Diversification Of Coal Industry And The Performance Of The Company

The correlation between diversification and corporate performance has always been a common concern of scholars both at home and abroad.Before,the analysis of diversification and business performance mostly took all industries as the research object,and the research on coal industry was less.With the increasingly fierce competition in the coal market,the scale of the coal industry has been expanding,and enterprises are diversifying in the process of development.Therefore,this paper,based on the research basis of coal listed enterprises,enriches the research perspective of diversification and enterprise performance,and provides more theoretical basis and reference for coal enterprises in China.By summarizing the definition and connotation of diversification management,this paper uses literature review to sort out the related literature of the relationship between diversification and enterprise performance,and takes the data of 2003-2016 years’ management of 25 listed companies in the two cities of China’s coal industry as samples,and uses statistical software SPSS 17 to carry out group descriptive analysis and correlation.Sex analysis and regression analysis.The results of the work and the main research are as follows:(1)many listed companies in China’s coal industry cover diversified activities.The higher the level of diversification is,the more unfavorable to business performance.In the 2003-2016 year period of the sample,the relationship between diversification and enterprise performance is significantly negative.It also shows that the higher the degree of diversification is not conducive to the performance of the enterprise.And there is a significant negative correlation between market prosperity and 2003-2011 years.But in the coal market downturn,the negative correlation effect is not significant for 2012-2016 years.(2)when the related diversification is carried out,the coal industry downturn interval is 2011-2016 years,which is conducive to the improvement of business performance,and has a significant positive correlation.During the period of sample selection and market prosperity,the related diversification is directly proportional to corporate performance,but not significant.In the 2012-2016 years of the slow development of coal industry,the diversification of enterprises can significantly improve performance.(3)when developing unrelated diversification,unrelated diversification will damage the interests of enterprises,that is,they are negatively related.When core business is mature,do not choose to develop unrelated diversification.In the implementation of diversified investment and management,coal listed enterprises in China should rationally plan the enterprise strategy,especially in the stage of the hard work of production capacity,and the State supports and encourages coal merger and integration.Therefore,the appropriate development of diversification should be based on the original business,strengthen cooperation with the related industries,use the advantages of resources,reduce the cost of investment,and achieve the efficient link between the upstream and downstream of the industrial chain.