This paper presents an empirical study the factors that influence financial performance of enterprises’ industrial diversification. The method of empirical analysis is comparing the good performance diversified companies with the bad to test which factor affects the financial performance of industrial diversification significantly. Basing on the theoretical analysis, we selected variables that measure corporate governance, diversification strategy, and enterprise management. We ran logistic regression with the data from Chinese listed companies. The result shows that more meetings of the board of directors, less unrelated diversification degree, higher total assets turnover and stronger ability to obtain operating cash inflow will increase the financial performance of enterprises’ industrial diversification.