Study On Diversification Strategy Of Agricultural Listed Company In West District Of China

Agricultural listed companies in west district of China are leading ones of Chinese agricultural companies. As a special part of all listed companies in China, their development will influence the steady of Chinese capital market. At the same time, as a agricultural company, their development will also influence Chinese agricultural economy deeply. From the mid of the 1990s, thirteen agricultural listed companies in west district of China had formed diversification strategy in the main. Based on the investigation, at the present time, firm diversification is very popular in all agricultural listed company in west district of China.This thesis tries to find out the rules of diversification dealing of agricultural listed companies in west district of China and provide consults to agricultural listed companies in west district of China through exploring the status, the motive , performance of diversification and the relationship between diversification and performance of companies.From the different angle of main industry, the type, the extent and so on, this study analyses the status of diversification of agricultural listed companies in west district of China. Based on the industry feature, it also analyses the motive of diversification. Moreover, the performance of diversification has been analyzed by using financial evaluating measures.Then,through setting up economic model,this paper also analyses the relationship between diversification and companies'performance.Main Results:First,agricultural listed companies in west district of China have formed related diversification strategy based on the agricultural industry.Second,generally speaking, agricultural listed companies in west district of China usually enter different industry to come true their diversification dealing.Third,the characters of agricultural business are the main external motives of diversification.Forth,the relationship between diversification and companies' performance of agricultural listed company in west district of China is positive relationship. As well as, diversification's influecement on companies'performance has discrepancy of sample company and time .Strategies & Suggestions:First,agricultural listed companies should attach more importance to agricultural business,and then,carry out related diversification strategy. Second, agricultural listed companies in west district of China also should weigh up their own capability and afford substantial financial support to diversification dealings.In addition,they need to adjust their diversification according to the relationship between diversification level and companies' performance.