Study On The Diversification And Performance Evaluation Of Media Industry

With the deepening of economic globalization,the fierce competition in the market,enterprises have tried to carry on the scale expansion by the diversification strategy,bigger and stronger after realizing the maximization of enterprise value.The enterprises of our country are actively exploring the diversification,but there are few successful cases.Whether to implement diversification,and how to carry out diversification is a difficult problem for many enterprises.Since the 21st century,with the continuous innovation of new technology,the traditional superior industries of media enterprises have been gradually replaced.It is difficult to maintain the survival of enterprises with a single mode of operation.Therefore,media enterprises have gradually embarked on the development path of diversification.Diversification has a certain impact on their market and financial performance.Exploring the path of diversification of media enterprises and analyzing its motivation and effect are of great guiding significance for enterprises to improve their operating performance and market competitiveness.This paper takes Time Publishing and Media Company as the research object,using its financial data from 2009 to 2017,to study the effect of Time Publishing and Media Company diversification strategy to corporate performance.Firstly,this paper analyses the mechanism of the influence of diversifieation on financial performance,then studies means of diversification,and explores the motivation of diversification.Then evaluates the performance of diversification from the aspects of enterprise value,profitability,solvency,operation ability,growth ability and cash creation ability based on financial indicators,and analyses the ways in which diversification affects financial performance from three aspects:resource alloeation,risk dispersion and intermal eapital market.Finally,this paper summarizes the successful experience and failure lessons of Time Publishing and Media Company diversification in the implementation process and reasonable suggestions to make it better to carry out diversification,also can provide reference for other media corporations to diversify.