Relationship between diversification and performance of Chinese real estate listed companies

Download: PDF(989 KB)
Export: BibTeX | EndNote | Reference Manager | ProCite | RefWorks

Abstract The existing research on the relationship between diversification and company performance still has many controversies. This study analyzes selected Chinese real estate listed companies as examples of company performance in an emerging capital market. The analysis considers the influence of regional diversification, product diversification, and business type diversification on the company performance using time series data (2007-2013). The factor analysis method is used to calculate a synthesize index to relate the degree of diversification and the performance. The results show no significant correlation between diversification and performance with regional diversification having minimal discount effect on the performance, product diversification having a secondary discount effect on the performance, and business diversification having the most significant discount effect on the performance. The combined effect of the diversification has a greater discount effect on the company performance.

Keywords real estate listed companies diversification company performance factor analysis discount effect

ZTFLH:

F239.35

Issue Date: 15 September 2015

	Service

	E-mail this article
	E-mail Alert
	RSS
	Articles by authors

	ZHANG Hong
	GAO Shuai
	LI Vera

Cite this article:

ZHANG Hong,GAO Shuai,LI Vera. Relationship between diversification and performance of Chinese real estate listed companies[J]. Journal of Tsinghua University(Science and Technology), 2015, 55(9): 977-983.

URL:

http://jst.tsinghuajournals.com/EN/ OR http://jst.tsinghuajournals.com/EN/Y2015/V55/I9/977

[1] Oliver E W. Markets and Hierarchies: Analysis and Anti-trust Implications [M]. New York, USA: The Free Press, 1975.
[2] Thomsen P. Ownership structure and economics performance in the largest European companies [J]. Strategic Management Journal, 2000, 21(6): 6-31.
[3] Berger P G, Ofek E. Diversification's effect on firm value [J]. Journal of Financial Economics, 1995, 37(1): 39-65.
[4] Denis D D, Denis D K, Atulya S. Agency problems equity ownership and corporate diversification [J]. Journal of Finance, 1998, 52(1): 135-160.
[5] Maksimovic V, Phillips G. Optimal Firm Size and the Growth of Conglomerate and Single-Industry Firms, Working Paper [R]. College Park, USA: University of Maryland, 1999.
[6] 苏东蔚. 多元化经营与企业价值: 我国上市公司多元化溢价的实证分析 [J]. 经济学季刊, 2005, 4(3): 135-158.SU Dongwei. Diversification and firm value: An empirical investigation of diversification premium based on China's stock-market listed companies [J]. China Economic Quarterly, 2005, 4(3): 135-158. (in Chinese)
[7] 姚俊, 吕源, 蓝海林. 我国上市公司多元化与经营绩效关系的实证研究 [J]. 管理世界, 2004(11): 119-135.YAO Jun, LV Yuan, LAN Hailin. The diversification strategy and business performance of China's listed company [J]. Management World, 2004(11): 119-135. (in Chinese)
[8] 朱江. 我国上市公司的多元化战略与经营业绩[J]. 经济研究, 1999(11): 54-61.ZHU Jiang. The diversification strategy and business performance of China's listed company [J]. Economic Research, 1999(11): 54-61. (in Chinese)
[9] Ansoff H I. Strategies for diversification [J]. Harvard Business Review, 1957, 35(5): 113-124.
[10] Gort M. Diversification and Integration in American Industry [M]. Princeton, USA: Princeton University Press, 1962.
[11] Wrigley L. Divisional Autonomy and Diversification [D]. Massachusetts, USA: Harvard University, 1970.
[12] Shleifer A, Vishny R. Managerial entrenchment, the case of manager specific investments [J]. Journal of Financial Economics, 1990, 25(1): 123-139.
[13] 柳建华. 多元化投资、代理问题与企业绩效 [J]. 金融研究, 2009, 349(7): 104-120.LIU Jianhua. Diversification investment, agent problems and corporate performance [J]. Journal of Financial Research, 2009, 349(7): 104-120. (in Chinese)
[14] 顾政华, 李旭宏. 主成分分析法在公路网综合评价中的应用 [J]. 公路交通科技, 2003, 20(5): 71-74.GU Zhenghua, LI Xuhong. Application of principal component analysis method in comprehensive evaluation for road network [J]. Journal of Highway and Transportation Research and Development, 2003, 20(5): 71-74. (in Chinese)

[1]	ZHANG Yakun, ZHANG Xuteng, TANG Wenzhe. Influence mechanism of innovation in the construction industry[J]. Journal of Tsinghua University(Science and Technology), 2024, 64(2): 235-242.
[2]	ZHAO Heng, LI Shaoyi, TANG Wenzhe, WANG Zhongjing, HU Senchang. Analysis of factors influencing construdion and operation of Ningxia's “Internet + urban and rural water supply” project and management recommendations[J]. Journal of Tsinghua University(Science and Technology), 2024, 64(2): 243-249.
[3]	Wenchao CHEN,Maoshan QIANG,Jianing WANG,Tengfei ZHENG. Perspectives of officials in land acquisition for hydropower projects and their influence on migrant satisfaction[J]. Journal of Tsinghua University(Science and Technology), 2015, 55(1): 46-49.