Study on Application of Diversification Strategy of Listed High-Tech Companies in China

A series of complicated factors are interdependent for firms whether to carry out specialized operation or diversified operation, how to make a strategic selection has been a focus for both the theoretical and industrial circle. Through cross-sectional study on the financial data of 139 listed high and new technical companies in six industries chosen from Shanghai Stock Exchange and Shenzhen Stock Exchange of China, it is found that specialized operation and related diversified operation are the most frequently chosen modes by the listed high and new technical companies and the high and new technical firms are more likely to take strategy of diversification than general firms. It is proposed through case study that the listed high and new technical companies in our country should focus their efforts on development of core business; specialization and low-degree diversification should be combined dynamically; and the listed companies in different industries should choose the strategy of development that suits them best.