This paper intends to examine the motivation of diversification. We choose the Shanghai listed companies that adopted a diversification strategy in 2011 but realized a declined performance in 2012 as the study samples...This paper intends to examine the motivation of diversification. We choose the Shanghai listed companies that adopted a diversification strategy in 2011 but realized a declined performance in 2012 as the study samples, and come to the following conclusions： （1） The macro environment will affect the implementation of the diversification strategy for some industries, such as extractive industry, wood furniture industry, rubber industry, and the building industry; （2） As to the sample of downward performance diversified companies, the shareholders＇ benefits transfer motivation is an important consideration. Further analysis shows that there are some differences in the degree of diversification, benefits transfer motivation, and the degree of income impairment when the sample is classified by corporate nature, growth stage, and firm size. The differences are more obvious in different corporate natures; and （3） A clear correlation between the management ability and the degree of income impairment is not found. But there are some correlations between ownership concentration and the degree of income impairment.展开更多
Based on the earlier work, this paper re-examines the relationship between diversification and corporate performance and finds a statistically significant U-shape relationship in the Chinese market. The result is test...Based on the earlier work, this paper re-examines the relationship between diversification and corporate performance and finds a statistically significant U-shape relationship in the Chinese market. The result is tested and confirmed for robustness by controlling for the firm size, age and indusu＇y effects. The findings do not support the notion that diversification is a return-reducing strategy and the understanding in the western economic and financial literature about diversification performance may not be automatically applicable to the case of China.展开更多
This study investigates the location choice performance of foreign direct investment （FD1） originating from small- and medium-sized multinational enterprises established in newly industrialized economies. In this st...This study investigates the location choice performance of foreign direct investment （FD1） originating from small- and medium-sized multinational enterprises established in newly industrialized economies. In this study we integrate location diversification, breadth and corporate governance to examine the performance of Taiwan Residents enterprises investing in Chinese mainland. Examining Taiwan Residents manufacturing enterprises from foundational, traditional and high-technology aspects, our findings demonstrate the following： （i） diversifying the location choice negatively affects the return of assets; （ii） investments in regions with an abundant population positively affect the performance of Taiwan Residents traditional manufacturing enterprises; and （iii） a higher percentage of insider hoMings in Taiwan Residents enterprises results in better FDl performance. We conclude that the performance of FDI originating from Taiwan Residents enterprises varies depending on industrial and governance characteristics. We suggest that the location choice for Taiwan FDI in Chinese mainland should be determined by the characteristics of the industry. Chinese mainland should attract multinational enterprises from emerging markets according to the characteristics of regions.展开更多
文摘This paper intends to examine the motivation of diversification. We choose the Shanghai listed companies that adopted a diversification strategy in 2011 but realized a declined performance in 2012 as the study samples, and come to the following conclusions： （1） The macro environment will affect the implementation of the diversification strategy for some industries, such as extractive industry, wood furniture industry, rubber industry, and the building industry; （2） As to the sample of downward performance diversified companies, the shareholders＇ benefits transfer motivation is an important consideration. Further analysis shows that there are some differences in the degree of diversification, benefits transfer motivation, and the degree of income impairment when the sample is classified by corporate nature, growth stage, and firm size. The differences are more obvious in different corporate natures; and （3） A clear correlation between the management ability and the degree of income impairment is not found. But there are some correlations between ownership concentration and the degree of income impairment.
文摘Based on the earlier work, this paper re-examines the relationship between diversification and corporate performance and finds a statistically significant U-shape relationship in the Chinese market. The result is tested and confirmed for robustness by controlling for the firm size, age and indusu＇y effects. The findings do not support the notion that diversification is a return-reducing strategy and the understanding in the western economic and financial literature about diversification performance may not be automatically applicable to the case of China.
文摘This study investigates the location choice performance of foreign direct investment （FD1） originating from small- and medium-sized multinational enterprises established in newly industrialized economies. In this study we integrate location diversification, breadth and corporate governance to examine the performance of Taiwan Residents enterprises investing in Chinese mainland. Examining Taiwan Residents manufacturing enterprises from foundational, traditional and high-technology aspects, our findings demonstrate the following： （i） diversifying the location choice negatively affects the return of assets; （ii） investments in regions with an abundant population positively affect the performance of Taiwan Residents traditional manufacturing enterprises; and （iii） a higher percentage of insider hoMings in Taiwan Residents enterprises results in better FDl performance. We conclude that the performance of FDI originating from Taiwan Residents enterprises varies depending on industrial and governance characteristics. We suggest that the location choice for Taiwan FDI in Chinese mainland should be determined by the characteristics of the industry. Chinese mainland should attract multinational enterprises from emerging markets according to the characteristics of regions.
