Research On The Impact Of Diversification Of Agricultural Listed Companies On Corporate Perfomance

As a big agricultural country,agriculture has the basic position of Chinese national economic development.With the development of Chinese economy into a new normal state,the economic development situation from the pursuit of economic growth rate to economic development quality,there is a new requirement to Chinese agricultural industry development,namely the change of development speed,structural optimization and power transformation.As the core of Chinese agricultural industry chain,the agricultural companies has a prominent leading role in the transition process,develop agricultural industry organizations,and to achieve agricultural industrialization.Therefore,the health status of agricultural listed companies is the focus of social concern.Throughout the characteristics of Chinese agricultural listed companies can be found,the diversification is common phenomenon,part of the agricultural listed companies change main business to some "Back farming" industry,which have quick,and short-term benefits driven by short-term interests.There are some agricultural listed companies on the way to industrial development,which is to their own industrial chain upstream and downstream expansion,by taking related diversification and non-related diversification model.But no matter which development model,there has not yet reached a concerted conclusion about the role of diversification.Based on this,this study mainly introduces China's agricultural enterprise diversification situation,and comparative analysis of the differences between agricultural and Non-agricultural enterprises,further subdivision of firm performance and diversification,the discussion on the construction of agricultural listed companies to carry out the effect of diversification may cause the framework of theoretical analysis and empirical model,and the effects of the structural differences between different scale agricultural listed companies.The study found:firstly,diversification is common in our agricultural listed companies,the descriptive test showed that the degree of diversification of agricultural listed companies in China(the number of cross industry and diversified entropy index)is higher than that of non agricultural listed companies,at the same time,our agricultural listed companies are more inclined to choose diversification related diversification strategy;Secondly,diversification negatively influence the level of agricultural financial performance of Listed Companies in China,through the model regression analysis found that the higher the agricultural listed companies overall degree of diversification and non related diversification,corporate financial performance is worse,and the related diversification degree did not significantly affect the company's performance level;Finally,the listed agricultural diversification on the performance management role,because agriculture has a higher risk,leading to resource allocation efficiency of agricultural enterprises is low,agricultural listed companies have to adjust and optimize the allocation of resources according to the business motivation,therefore the agricultural listed companies in the process of the development of diversification in the management of its management performance has improved,but the regulation take some time to appear in.Based on the above conclusions,this paper puts forward some pertinent policy suggestions on the agricultural listed companies in our country,such as the choice of management strategy and the investment of enterprises.