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Factor analysis in the study of China's listed companies in the food industry

Author: ZhuLin From: www.yourpaper.net Posted: 2009-10-30 15:26:09 Read:
Abstract: Western Gort (1962) since the earliest empirical research on corporate diversification, in 40 years time, the literature can be described as voluminous empirical research on diversity relates to management, industrial organization and corporate finance three a field. Experienced during the different stages of development. The Western empirical studies on corporate diversification from the theory and the way, given China's current research on the diversification of listed companies with significant revelation.
Keywords: Western; China; diversification; operating performance

Western companies diversified Empirical Study on

From the 1960s to the 1980s, Western literature has focused on corporate diversification empirical research in the field of management science and industrial organization, management scholars from business strategy to examine the impact on corporate profitability, and corporate diversification strategy diversified mode, in which the study of the most representative Rumetl (1974,1982). After the 1990s, with the different reaction of the market for the diversified corporate mergers and non-diversified acquisitions Mocrk (1990) and Matsuskaa (1993) study, and Lnag etc. (1994) and Begerr etc. (1995) groundbreaking method has a broad impact and diversified to re-measure the impact on business performance. After empirical research on a wide range of more focused in the area of ??corporate finance.
(A) business diversification and operating performance measure
A measure of corporate diversification
Gollop and Monahan (1991) pointed out that an ideal diversification indicators should meet the following five properties: first, it should be with the enterprise production positively related to the number of product categories, that is the kind of enterprise products more diversified level The higher, called digital sex the (crtiiaclnumberPr to knock eyrt); Second, it should with the production of different types of products the uneven distribution of the degree of negative correlation, namely the production of different types of products yield more unevenly distributed, diversified higher the level of , called the distribution of sex (disrtibutinoporpeyrt); Third, it should be a direct reflection of the heterogeneity of the enterprise product categories, the larger the difference between the production of different types of products in the same enterprise, the higher the level of diversification, called heterogeneity (heetorgeneiytPropeyrt ); Fourth, it should either be used to measure the level of corporate diversification, and also can be used to measure the enterprise subordinate individual factories (estbahhsmnet or p! nat) and one of the industry's overall diversification situation; Fifth, if there is may be the best of its value range falls open interval of 0-l. Wherein, the first three properties are most important.
2. Measure of business performance
Almost all corporate diversification and joint ventures to provide an explanation of the theoretical research, its ultimate end result can be attributed to the impact of diversification on corporate performance (imrperofmrnaec), or positive or negative correlation. Or even the corporate diversification theoretical odds in order to verify different perspective, the vast majority of empirical research on corporate diversification examine the reality of the relationship between the degree of diversification and corporate performance, and provide evidence to the picture shows the theoretical research on corporate diversification. Diversified empirical research in corporate performance metrics is a crucial issue, there may be a large deviation between the different performance metrics drawn final conclusions. Overall, used as a measure of corporate performance indicators can be divided into the following four categories, accounting profitability indicators, stock returns, from the point of view of Tobin's q and from total capital. An Empirical Study of the early general profitability and stock returns to measure corporate performance.
(B) the diversification of empirical research on business performance
In fact, in the real economy, corporate diversification there are many issues worthy of empirical research to verify, such as the specific relationship of a diversification of industries and enterprises and business performance, the difference between diversified businesses and non-diversified enterprise, corporate diversification motives corporate diversification mode. However, after the mid-1990s, more research on the general relations of corporate diversification and operating results, the empirical validation of these issues done and not enough. Second, China's listed companies diversified research

1. Diversification of China's listed companies operating Overview
The main business revenue information disclosed in the annual reports of listed companies by industry-based, diversified business situation of China's listed companies were analyzed and summarized. Review of research literature about the diversification of Chinese listed companies, and then were involved in a number of industries in the main business of the enterprise number and product concentration two indicators of the degree of diversification of listed companies in China in 2002-2007 visits, the last example of the degree of diversification between the different sectors, circulation degree of nationalization of enterprises and between enterprises of different diversification status profitability of listed companies in 2007, diversified operating conditions and the accounting data , asset-liability ratio, price-earnings ratio, such as a comparative analysis. The analysis found that, the diversification of different industries and enterprises there is a significant difference. In a general sense, the high level of competition in the industry, or the proportion of total assets, fixed assets, relatively low industry, corporate diversification is relatively higher.
2. Diversification of China's listed companies factor analysis
Diversification Overview of China's listed companies have a general understanding of listed companies are classified in accordance with the related diversification, non-diversified and varying degrees of diversification unrelated diversification, these enterprise profitability circulation degree of nationalization, debt capacity, price-earnings ratio, whether there is a difference.
Example of the degree of diversification of the circulation of the degree of nationalization of enterprises (excluding related diversified enterprise) as well as different diversified situation of enterprises listed companies in 2007, diversified operating conditions and various accounting data (including related diversified and non-diversified and diversified unrelated diversification) profitability, asset-liability ratio, price-earnings ratio, a comparative analysis. First, in a general sense, the related diversified businesses and non-diversified corporate profitability to be significantly higher than the number greater than or equal to a number of industries not related diversified enterprise; Second, the proportion of state-owned shares is greater than or equal to 50% The average degree of diversification of the state-owned holding enterprises was significantly lower than the non-state-owned enterprises and state-owned shareholding enterprises; Third, the proportion of tradable shares is greater than zero is less than 30% of the average corporate diversification was significantly lower than that of other enterprises, the proportion of tradable shares is greater than or equal to 50% of enterprises diversified significantly higher than other enterprises; fourth, unrelated diversification enterprise debt capacity was significantly higher than the non-diversified companies; Finally, non-diversified corporate earnings significantly lower than the unrelated diversification enterprise.
The analysis shows that the diversified management as a strategic choice with endogenous, which industry and enterprise, circulation degree of nationalization, profitability and other factors are closely related.

References:
[1] Chun-Li Zengquan, Zhang Hanrong. Value effect of diversification [J]., China Accounting and Financial Studies, 2007, (9).
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