An Empirical Study On The Relationship Between Diversification And Management Performance Of Listed Agricultural Companies

Diversified strategy is contrary to specialized strategy. On the basis of whether there exists correlativity between the products and business scopes, diversified strategy can be divide into two kinds: related diversification and non-related diversification.Agriculture is the backbone of the national economy and the people's livelihood. The thesis choose 42 samples from the listed agricultural companies in China and found out that there are many problems for them. Some of them are small and have unsound equity structure, the area and industry distribution for them are unreasonable and some of them with low technology and unevennessed profits. What's more, many of them lapses their business from agriculture. Lots of listed agricultural companies in China adopt the diversified strategy, half of which extend their business scope into non-agriculture areas such as chemistry industry, real estate, biological pharmacy, finance, investment and electrommunication. However, only a little of them adopt the strategy of related diversification.What are the reasons for so many listed agricultural companies in China adopt the strategy of diversification? Firstly, listed agricultural companies faces a lot of unexpected factors such as natural disasters, market risks, policy risks and etc. Secondly, agriculture is a low profiting industry with long-term investment but poor profits. Thirdly, majority of listed agricultural companies in China are strypped-down from stated-owned enterprises, some leaders of these companies adopt diversification for their personal benefits. In addition, some others adopt diversification to generate coordinated benefits. At last, it is also certain that some companies' original intention isn't agriculture, but take advantage of the preferential policies to the agriculture company.With regard to the performances of these companies, by using statistical research approach, in the thesis a further investigation is given on the relationship between the degree of diversification and the listed agricultural companies' profit ability, growth ability, risk-resisting ability and debt paying ability, conclusions as following:...