An Empirical Study on Diversification and Corporate Performance of listed Private Controlled Enterprises

摘要

The relation between diversification and company performance has been a hot spot in recent research of corporate finance,yet the opinions on diversification diverge because of diversity in positive research results.Based on analysis of Chinese and foreign literature review,this paper adopts Chinese private corporations as the research sample and draws conclusions;a negative relation is founded between diversification and performance in our private corporations.Our results aptly fit into the on-going debate on the benefits and detriments of diversification and multiple directorships and have relevant implications for policy maker,regulators,and corporate reformers.