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Sustainability 2016, 8(10), 983; doi:10.3390/su8100983

Diversification and Corporate Performance: Evidence from China’s Listed Energy Companies

1
School of Business Administration, China University of Petroleum, No. 18 Fuxue Road, Changping District, Beijing 102249, China
2
Academy of Mathematics and Systems Science, CAS, No. 55 Zhongguancun East Road, Haidian District, Beijing 100190, China
*
Author to whom correspondence should be addressed.
Academic Editor: Giuseppe Ioppolo
Received: 26 August 2016 / Revised: 18 September 2016 / Accepted: 22 September 2016 / Published: 29 September 2016
(This article belongs to the Section Economic, Business and Management Aspects of Sustainability)
View Full-Text   |   Download PDF [244 KB, uploaded 29 September 2016]

Abstract

Recently, China’s energy industry has been continuously depressed due to a slowdown in its economic development. China’s energy companies have made considerable efforts to promote their corporate performance to mitigate this performance decline and to ensure the sustainable development of China’s energy industry, macro economy, society and environment. In this paper, the effects of two business strategies—industrial diversification and international diversification—on the performance of listed energy firms are empirically investigated. The empirical results show the following: (1) industrial diversification hinders corporate performance; (2) for industrially-diversified energy companies, related diversified strategies are more effective than unrelated diversified strategies; and (3) international diversification improves the performance of renewable energy firms, but hinders the performance of conventional energy firms. These results suggest that as economic conditions are not currently optimal, China’s energy companies should pay more attention to their main businesses and generate more products to satisfy market demand. View Full-Text
Keywords: industrial diversification; international diversification; corporate performance; sustainable development; China industrial diversification; international diversification; corporate performance; sustainable development; China
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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MDPI and ACS Style

Li, Q.; Wang, W.; Lou, Y.; Cheng, K.; Yang, X. Diversification and Corporate Performance: Evidence from China’s Listed Energy Companies. Sustainability 2016, 8, 983.

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