New Visual Angle to Institution-Based Theory of Corporate Diversification: Case of Business Groups in China

摘要

This paper introduces the new development of institution-based theories of corporate diversification, then points out there are a lot of conflict results in empirical studies of corporate diversification which took place in the context of emerging economy and institutional transition. In order to explain this perplex, we come up with a new visual angle to probe into this study area. By reviewing the diversification route of Chinese business groups, we argue that opening industry brings incentives to corporate diversification, and the degree of industry marketization affects the performance who diversify into it.