Study On Diversification Risk Of Agricultural Listed Company In China

Agricultural listed company is corporate enterprise form which stands for advanced agricultural productivity in China nowadays. Moreover,it's also important modality to realize industrialization of Chinese agriculture. What's more,it's one of main approaches to come true Chinese agriculture'capitalization and main force to take part in WTO' international competition.At the metaphase of 1990s, agricultural listed company of A shares in Shanghai Stock Exchange and Shenzhen Stock Exchange develop diversification one after another.And some come forth severe problem to deviation from agricultural industry. Diversification has been a universal phenomenon of agricultural listed company in China. Diversification may create opportunity and impel sustaining development for agricultural listed company , it also may bring biggish risk and influence normal management of them on the other hand.So,research on diversification risk of Chinese agricultural listed companies is even important.This paper stablished in the practice of Chinese agricultural listed companies'diversification, analyses basic actuality such as motivation,main type and level of diversification.After discussing risk factors of diversification,this study also measures the diversification risk of Chinese agricultural listed companies in Shanghai Stock Exchange and Shenzhen Stock Exchange with some risk index.In order to hold relationship between diversification and risk of Chinese agricultural companies,it analyzes diversification'influence on risk of Chinese agricultural listed companies. inally, he paper provides some definite theoretic guidance and strategic decision-making consult to Chinese agricultural listed companies.This paper develops its study from two or three aspects.First,it introduces some theory on diversification management and defines agricultural listed companies'diversification.On the basis of diversification theory,it also classifies diversification logically and compares the relationship between diversification management and diverse invest.Second,it analyzes diversification'actuality of Chinese agricultural listed companies,such as motivations,mostly industry ,main diversification type and different diversification level.Third,it also estimates diversification risk of Chinese agricutural listed companies.On the basis of risk definition and classification,the study discuss different measurement on risk and analyzes risk factors and corresponding risk status of diversification.Fourth,it's about research on relationship between diversification and risk.Through setting up research model and selecting sample logically,this paper analyzes relationship between diversification and risk of Chinese agricultural listed companies.Main Results:First,the main motive of diversification is to separate companies'risk.Second, enerally speaking, iversification dealings of Chinese agricutural companies is basis on agriculture and some industry related to agriculture. hird, hinese agricutural companies have formed related diversification strategy. ourth, he diversification level of Chinese agricultural companies is quite high.Finally, diversification helps to disperse Chinese agricultural companies'non-system venture, but it can't disperse companies'systemic risk.Strategies & Suggestions:First,Chinese agricultural companies should attach more importance to agricultural business,and then, arry out related diversification strategy.Second, hey also need to adjust their diversification strategy in order to disperse non-system venture and assort with their systemic risk.