The Impact of Refocusing on Performance of Chinese Firms

Based RBV and Agent Theory, this research used the panel data from 2004 to 2008 of 403 eligible companies who listed on A - shares in Shanghai and Shenzhen to analyze the impact of refocusing on corporate performance, and the relations among the impact, environmental uncertainty, corporate governance and diversified level. The findings indicate that: first, the implementation of refocusing can improve corporate performance; second, higher the diversified level is, the better the refocusing performance is third, in general, "chain" refocusing has more positive impact on corporate performance than "point" refocusing; last, corporate governance and diversified level influence the result of refocusing.