Study On Diversification Strategy And Management Performance Of Agricultural Listed Company In China

In order to encourage agricultural listed companies to process industrialization explore and promote agricultural industrialization in China, the state actively supports agricultural listed companies to meet with the need of business development funds through capital market. However, in practice many agricultural listed companies diversified their management in varying degrees for different reasons, which may both create opportunities for a company's development and increase the risks of an enterprise. So, how about diversification levels and management performances of agricultural listed companies in china at present? How did diversification strategy effect upon those agricultural listed companies in china? If those agricultural listed companies are developmental enough for diversify investment? And which type of diversification strategy needs to be chosen? All those problems should be resolved as soon as possible.Through the research about the condition of diversification strategy, management performance and the relation between them, we found that: First, in the selected sample of 42 agricultural companies, half of these companies involved in real estate, bio-medicine, finance and other sectors with higher profitability of non-related diversification, while the main business carried out around their diversified agriculture-related listed companies only 14.29%. Second, in addition to the Fu Co., Fortune Ng Fung, the East Ocean, Xinnongkaifa and so on 10 listed companies in the comprehensive performance of agriculture and the relatively high scores, the performance in relatively well, the majority of agricultural companies in China are in generally or poor performance. Third, when calculate the comprehensive performance score, the profit share of power factor lies in the largest common factor (34.7%), which indicates that the profit factors of agricultural listed companies in China has the biggest effect on the overall profitability, so it is the most important link to improve the corporate profits for improving the business performance. Forth, diversified businesses has different effect on financial targets of our agricultural listed companies: on the corporate profitability, capital expansion capability and development capacity indicators and related diversification has the maximum effect to the positive impact of enterprise management; For the debt repayment indicators, it really can improve the agricultural listed enterprise profits and enhance the debt repayment capacity in a short term through proceeding faster access to carry out high non-related diversification business in non-agricultural industries, but it is not good for the long-term development of enterprises. Fifth, after developing their own core competitive power in their mainly business, Chinese agriculture listed companies can expand business-related diversification moderately to spread the risk of non-system, full use of remaining resources and gain the synergy of resources according to their specific strength.In the end, this article offers some targeted policy recommendations to promote agricultural listed companies'development healthily and constantly and to accelerate the process of agricultural modernization according the research results.