The Relationship Between Diversification, Innovation Investment And Business Performance

For manufacturing listed companies,the key to ensuring the sustainable development of enterprises is to implement diversified management strategy,carrying out enterprise innovation activities and improve overall performance.On the basis of studying a large number of related literatures at home and abroad,this paper takes diversification,innovation investment and business performance into a new model: "strategy-resource-performance" model.Through collecting and processing of the relevant data of manufacturing listed companies in Shandong Province for eight years from 2009 to 2016,the paper uses empirical research methods to study the correlation between the three,and separately studies the impact of diversification degree and innovation input intensity on business performance,As well as the intermediary effect of innovation investment intensity.In research,Herfindahl index method is used to determine the diversification of the company.Based on the original R & D investment,R & D personnel are added into the index as input for innovation.EPS and ROE,as a performance evaluation index,and the asset-liability ratio,the age of the company,the size of the company as a control variable.Before the empirical analysis,this article will simply describe the statistical analysis of the degree of diversification and the intensity of innovation in the listed companies of manufacturing in Shandong Province,and analyze the basic status quo of diversification,innovation input intensity and performance of listed companies in Shandong Province.Then using the correlation analysis to initially determine the intrinsic relationship between diversification,innovation input and company performance,Paving the way for empirical analysis below.Through the empirical analysis of the data of manufacturing listed companies in Shandong Province,the following four conclusions are obtained:(1)The degree of diversification of manufacturing listed companies in Shandong province is negatively correlated with the EPS,the diversification degree and the return on net assets(ROE)negatively correlated.As diversification increases,corporate performance(ROE,EPS)will decline.(2)The R & D investment of listed manufacturing companies in Shandong province is negatively correlated with the return on net assets(ROE),and the R & D personnel investment is negatively correlated with the return on net assets(ROE).As the level of innovative investment(RDIC,RDIH)increases,the rate of return on net assets(ROE)decreases.Innovative inputs are negatively correlated with EPS but not significant.(3)The degree of diversification of manufacturing listed companies in Shandong Province is positively related to the investment of R & D funds,and the degree of diversification is positively correlated with the input of R & D personnel.As diversification increases,the intensity of RDIC,RDIH will also increase.(4)For listed manufacturing companies in Shandong Province,R & D personnel have played an intermediary role in the relationship between diversification and return on net assets,while other intermediary effects have not been verified.Finally,based on the empirical research conclusions of manufacturing listed companies in Shandong Province,this paper provides some countermeasures and suggestions for the development of manufacturing industry in Shandong Province.Based on the research status quo,the paper forecasts the research contents.