Study On Problems In "Non-agricultural Investment" Of Chinese Agricultural Listed Companies And Its Management

Agricultural listed companies, as a supporter of capital markets, is a bond of capital markets and agriculture industries, and is an important foundation of the industrialization of agriculture promotion, and modern agriculture development. However, for quite a long time, the phenomenon "non-agricultural investment" in Chinese agricultural listed companies was very serious.This essay uses 53 agricultural listed companies in Shenzhen and Shanghai for research. Do qualitative and quantitative analysis on the flows and characteristics of their funds and non-fund flows by the end of 2004, which emphasize the changes of "Wuchang yu" investment industry, then summed up agricultural listed companies " non-agricultural investment" status, ways and characteristics, and use of statistical methods to analysis the relevance of " non-agricultural investment" and financial risk management of listed companies. Analysis shows: agriculture listed company funds invested change frequently, " non-agricultural investment" phenomenon was very serious, the industry which it invested had little relevance of it, and more to indirect investment manner, "non- agricultural investment" has no positive impact on reducing companies financial risk and improving the financial performance of enterprises, or even have a negative effect. In addition, "non-agricultural investment" not only affects agricultural listed companies' main industry. The efficiency of investment and refinancing capacity, but also undermines the structure and order of our capital market, damages the healthy operation of the industrialization of agriculture, and is not conducive to the coordinated development of the national economy.The essay quoted the diversification strategy in the enterprise as theoretical basis, and had a deep discussion on the subjective reason of Non-agricultural investment", then concluded " Non-agricultural investment" is a presentation of diversification strategy , but it never reduce management risk ,none did it improve the competitiveness of the enterprises, it was an incorrect strategy. In addition, the contradiction between the agriculture natural disposition of low profit and the capital's natural disposition of pursuing the profit, the preferences by the "shell" of agricultural listed companies and the reality of agriculture was hard to develop were objective reason of the phenomenon.At last, the essay gives the policies advises on treating "Non-agricultural investment": the current policies on agricultural listed companies do more bad than good, the financial and tax policies should to adjusted; Improve the stock right structure of the agricultural listed company progressively , improve the investment policymaker's quality , strengthen encouragement and supervision to investment policymaker. Improve agricultural listed companies modern enterprise system; Establish a sound supervisory system of agricultural listed companies; Vigorously develop agricultural listed companies main industry.