The Empirical Analysis On The Motivation Of Agricultural Listed Companies Deviate From Agriculture

As the ties between the capital market and agriculture industry, agricultural listed companies have become strong support to promote the industrialization and modernization of agriculture. It is not only an important carrier of the capital market, but also is a tie of promoting the industrialization of agriculture. Therefore, whether it grows healthily is not only an important issue of the capital market, but also affects on the healthy development of the national economy. In recent years, on the one hand, some of them listed under the banner of "agricultural" signs and enjoyed various preferential policies .On the other hand, they put large investment funds in the non-agricultural industries. Such non-agricultural expansion not only runs counter to the early wish of the government's supporting, but also makes agricultural industries diminish heavily in the listed industries. It doesn't benefit the development of the agricultural industry and capital market.This phenomenon attracts widely concern of scholars, but the research mostly concentrated on the characteristics of the phenomenon of "deviation from Agriculture"(DFA) and the reasons why this happened. On the reasons of DFA, almost all scholars agree that agricultural listed companies want to improve their operating performance, reduce risk. However, previous research in this area is only at the theoretical stage, not empirical analysis.Firstly, this paper used factor analysis to evaluate the performance of them, and compared the performance between DFA agricultural listed companies and No-DFA agricultural listed companies to find out whether DFA can improve the performance. Using the correlation between the diversification and DTL to find out whether diversification could reduce risk. Through the empirical analysis, we can draw to the conclusions: (1) "DFA" can not improve its operating results (2) "DFA" can not reduce the risk. The general explanations need improvement. Finally, it gave its new points and some suggestions to guide the agricultural listed companies grow healthily...