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An Empirical Study on Industry Characteristics of Diversification Strategy for Listed Companies in China |
LIU Su, XUE You-Zhi, JI Xin |
1.Shandong Economic Univerisity, Jinan, China; 2. Nankai Univerisity, Tianjin,China |
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Abstract This article examines the listed company’s level of diversification and the type of diversification preferences in different lines of business and manufacturing subcategories as well as the industry factors on the diversification efforts using statistical analysis. The study have found out that as for different lines of business and manufacturing subcategory of listed companies there are significant differences in the level of diversification and the differences are prevalent between industries. Listed company on the types of diversification preferences in different industries exhibits convergence or divergence. Diversification varies stably in different sectors as time goes by. About 5 percent of the differences of diversification can be explained by the industry.
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Received: 18 September 2009
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