Determinants of diversification by listed firms in China

Abstract

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.

摘要

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。