| Can Shareholders Benefit from Domestic-geographic Diversification Strategy：An Analysis based on Typical Case Study and Empirical Work |
Received:October 15, 2017 Revised:October 15, 2017 |
Key Words: Domestic-geographic Diversification; Shareholder’s benefits; Going out Strategy; Transformation and Upgrading |
| Author Name | Affiliation | | Xueliang Han | Henan University of Finance and Law | | Xuefeng Wang* | Ecole Supérieure de Commerce de Toulouse |
|
Hits: 564 |
Abstract: |
| Based on the typical case study of Xixia Automobile Water Pump Co.，Ltd and empirical study using 588 Chinese private listed firms’ 9 years longitudinal data，this paper analyses the relationship between China’s private firms’ domestic-geographic diversification and shareholders’ interests. We find that there is a U-shape relationship between them，and the U-shape will be adjusted by the degree of product marketing development where the parent company located and the implementation types of domestic-geographic diversification. The results of this study not only enriches the theories of geographic diversification among existing private firms，but also brings light to transformation practice for them. |
