Skip to main content

Determinants of diversification by listed firms in China


This paper empirically studies the determinants of diversification of Chinese listed companies from the perspectives of motivation and conditions. Results show that the traditionally believed motivations of economic rationality, organizational rationality and individual rationality have all exerted influences upon the choice of diversification models. By comparison, the choice of diversification mode for Chinese listed firms is largely based on organizational rationality motivation (to reduce company risks) and individual rationality motivation (in the self-serving interests of the top management). Meanwhile, such conditioning factors as company size, ownership structure, age of being listed, and the industry in which a company is all have significant effects on the choice and degree of diversification for Chinese listed firms.


从主观动机和客观条件两个方面, 对我国上市公司的多元化决定因素进行实证检验, 结果表明, 我国上市公司是否多元化以及多元化的程度受多种因素影响。 就主观动机而言, 传统理念的多元化经营的经济理性动机、 组织理性动机以及个人理性动机, 不同程度地影响着我国上市公司进行多元化经营模式的选择。 但相比较而言, 我国上市公司的多元化经营模式的选择, 更多的是基于组织理性动机(降低公司风险)和个人理性动机(公司高맜出于利己动机的考싇)。 同时, 在客观条件方面, 公司规模、 막权结构、 公司上市的时间长短以及公司所处的行业等因素也对上市公司多元化及其程度产生显著影响。


  1. Amey L(1964). Diversified manufacturing businesses. Journal of the Royal Statistical Society, A(27): 251–290

  2. Baumol W(1958). On the theory of oligopoly. Economics, (25): 187–198

  3. Gollop F M, Monahan J L(1991). A generalized variable of diversification trends in US manufacturing. The Review of Economics and Statistics, (73): 318–330

  4. Hill W L, Hanson S(1991). A longitudinal study of the cause and consequences of changes in diversification in the U.S. pharmaceutical industry: 1997–1986. Strategic Management Journal, (12): 187–199

  5. Hoskisson R, Hitt M A(1990). Antecedents and performance outcomes of diversification: A review and critique of theoretical perspectives. Journal of Management, 16(2): 461–509

    Article  Google Scholar 

  6. Jiang Fuxiu(2005). Firm growth and firm value: A comparative study of listed companies under different types of control. Working Paper (in Chinese)

  7. Jiang Fuxiu, Liu Zhibiao, Lu Zhengfei(2005). Diversification: Firm value and earnings fluctuation. Working Paper (in Chinese)

  8. Larsson R(1990). Coordination of Action in Mergers and Acquisitions. Lund: Lund University Press

  9. Marris R(1963). A model of the managerial firm. Quarterly Journal of Economics, 77:185–209

    Google Scholar 

  10. Ramanujam V, Varadarajan P(1989). Research on corporate diversification: A synthesis. Strategic Management Journal, (10): 523–551

Download references

Author information



Corresponding author

Correspondence to Fuxiu Jiang.

Additional information

Translated and revised from Guanli shijie 맜理世界(Management World), 2006, (5): 128–135

Rights and permissions

Reprints and Permissions

About this article

Cite this article

Jiang, F. Determinants of diversification by listed firms in China. Front. Bus. Res. China 2, 170–186 (2008).

Download citation


  • diversification
  • determinants
  • economic rationality
  • organizational rationality
  • individual rationality


  • 多元化
  • 决定因素