Research On The Impact Of Diversification Of Chinese Agricultural Listed Companies On Company Growth

Agriculture as a basic industry related to national economy and people's livelihood,its healthy development is very important.For many years,the Central Document No.1has continuously focused on agriculture,rural areas,and farmers,and has formulated a number of policies to support the three peasants and agribusinesses.As a typical representative of the leading enterprises of agricultural industrialization,listed agricultural company's healthy and stable development has played a positive role in the stability of the agricultural economy.Most of Chinese agricultural listed companies are diversified.For listed companies in agriculture,whether diversification has a positive or negative impact on the company has been controversial in both practical and theoretical circles.Therefore,this paper studies the impact of diversification on the growth of agricultural listed companies.First,read and compile the literature to understand the research dynamics of domestic and foreign scholars.Then this thesis describes the basic situation and diversified operation status of agricultural listed companies,and at the same time analyzes the causes of diversification.From the four levels of profitability,operations,scale expansion,and debt repayment,select indicators to build a growth evaluation system for agricultural listed companies.Factor analysis method is used to calculate the growth score of companies,choose the entropy index to measure the degree of diversification,and select control variables to return to the balance panel data.The empirical results show that the higher the overall degree of diversification of Chinese agricultural listed companies,the more unfavorable the company's growth.The overall level of diversified operations is significantly negatively related to the earnings of agricultural listed companies,debt repayment,and scale expansion,and has no significant impact on operational capabilities.The degree of related diversification operation has no significant effect on the growth of agricultural listed companies.There is a significant negative correlation between non-related diversification and the growth of agricultural listed companies.Finally,it is proposed that Chinese agricultural listed companies should focus on nurturing core competitiveness and appropriately diversifying their operations.