Author(s)

Zipeng Xu

Management School, Jinan University, Guangzhou, China.

China market is a divisional market. The distinction between the provinces in China is even larger than the one between some countries abroad. This article studies the relationship between the manufacturing expansion behavior across provinces in the east part of China and the corporate performance. Here two assumptions are presented in this article: 1) there exists a negative correlation between the geographical diversification degree across provinces and the corporate performance; 2) there exists a U-shaped relationship between the geographical diversification degree across provinces and the corporate. By studying the data on 442 China listed companies during the period of 2009 to 2014, it is found that the geographical diversification has a negative impact on the corporate performance when the geographical diversification degree is lower, while the geographical diversification has an active impact on the corporate performance if the geographical diversification degree is higher.

The Geographical Diversification, Performance, Divisional Market

Xu, Z. (2017) The Impact of the Enterprise Trans-Province Geographical Diversification on the Corporate Performance of the Manufacturing Industry in Eastern Part of China—Empirical Analysis Based on the Panel Data of the Listed Companies. Open Journal of Business and Management, 5, 73-82. doi: 10.4236/ojbm.2017.51007.