Based on the character of ultimate controlling shareholder' ownership structure, this paper analyzes how incentives by the divergence of control rights and ownership and government control rank and so on effect on corporate diversification of listed companies. The results indicate that the higher the degree Of divergence of control rights and ownership is, the higher corporate diversification is; the relation between them is more obvious in the corporate controlled by local government and in the corporate controlled by the inferior government. Moreover, we find the cash right can restrain agency conflict.