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The Relationship Between Diversification Strategies and Corporate Financial Performance: Taking Gree Group as an Example
- 1 Chongqing University of Technology, Chongqing 400000, China
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Abstract
Diversification strategy is a common and important method for enterprises to expand business scope, effectively use resources, and improve economic benefits. However, not all companies that have adopted a diversified strategy will be successful. There are still some controversies about the relationship between diversification strategy and firm performance. Based on summarizing the diversification theory, this paper evaluates the performance of Gree Group under the diversification strategy through financial indicators, Tobin's Q value, and share of revenue. We draw a conclusion that Gree's current diversification strategy is not suitable for the future development of the enterprise and provide suggestions about the adjustment of Gree’s diversification strategy.
Keywords
Diversification Strategy, Tobin’s Q, Financial Indicators Analysis
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Cite this article
Li,Z. (2024). The Relationship Between Diversification Strategies and Corporate Financial Performance: Taking Gree Group as an Example. Advances in Economics, Management and Political Sciences,97,1-7.
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Volume title: Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
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