Determinants of diversification by listed firms
in China
JIANG Fuxiu
Author information+
School of Business, Renmin University of China, Beijing 100872, China
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Published
05 Jun 2008
Issue Date
05 Jun 2008
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.
JIANG Fuxiu.
Determinants of diversification by listed firms
in China. Front. Bus. Res. China, 2008, 2(2): 170‒186 https://doi.org/10.1007/s11782-008-0010-y
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