An Analysis Of The Impact Of Diversification On Corporate Performance

With the rapid growth of China's economy,domestic enterprises in order to maximize their own interests,on the basis of the original business to other areas to carry out diversified operations.Agricultural food processing industry plays an important role in the national economy,which can mobilize the agricultural industrial structure and adjust reasonably to benefit agricultural efficiency and farmers' income.The state attaches great importance to agricultural development and has launched a number of policies to promote the development of agricultural food processing industry.However,under the influence of the fluctuation of raw material price and the epidemic situation of animal husbandry in China in recent years,the operating income of some enterprises has decreased,so the enterprises have begun to diversify their operations.This paper chooses Tongwei shares as the target case of this paper,first introduces the background and significance of the topic,then starts from the concept of diversification and the relationship between enterprise performance,reviews the research progress of these two aspects in detail,at the same time,summarizes the research status of these two aspects.This article uses the literature research method,the case analysis method and the questionnaire method to carry on the research analysis,to the enterprise diversification management closely related concept and the theory carries on the arrangement and the elaboration.Then introduce the development and diversification process of Tongwei stock diversification,then introduce the industry of Tongwei stock and through the way of questionnaire,Collect the suggestions and ideas of the industry about the impact of diversification on enterprise performance,select an effective questionnaire,through reliability and validity analysis,make this paper more persuasive.Then the motivation and degree of diversification of Tongwei shares are analyzed to pave the way for the subsequent analysis of financial performance of enterprises.Through diversification measurement analysis,it is shown that Tongwei shares have been increasing diversification in recent years.This paper selects financial index and non-financial index to analyze Tongwei shares.Through the analysis of financial index,it is concluded that the profitability of Tongwei shares is relatively good in the process of diversification.And its asset-liability ratio and its solvency in the management process performance is relatively deficient.Finally,this paper summarizes the risks in the development of enterprise diversification,and puts forward some suggestions on the basis of this,so as to achieve the ultimate goal of writing this paper.Through the case of diversification of Tongwei shares,it is shown that the diversification of enterprises can bring good income and improve the performance of enterprises,but the diversification of enterprises will also bring certain risks to enterprises.Therefore,this paper combines the motivation and performance of the diversification of Tongwei shares,not only to analyze the behavior of the diversification of Tongwei shares,but also to provide some reference for the enterprises that are preparing to diversify in our country.