Relationship between diversification and performance of Chinese real estate listed companies

ZHANG Hong; GAO Shuai; LI Vera

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Journal of Tsinghua University(Science and Technology) ›› 2015, Vol. 55 ›› Issue (9) : 977-983.

CONSTRUCTION MANAGEMENT

Relationship between diversification and performance of Chinese real estate listed companies

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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.

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

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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

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