The Reaearch On The Impact Of "Deviation From Arriculture" Of Agricultural Listed Companies To Buniness Performance

As the leading enterprises in the industrialization of agriculture, agriculturallisted companies enjoy the national tax revenue preferential policy, and are theplatoon guide of national development of agriculture, the support of the industrializedoperation of agriculture in securities market. But in recent years, some agriculturallisted companies have a "farming" signboard, and enjoy all the preferential policies inthe country. At the same time, they put money in the non-familiar area of high riskand high yield. By the non-agricultural expansion, they are engaged in the "deviationfrom agriculture" business. But, can the "deviation from agriculture" improve theenterprise performance? Even if it can improve the enterprise performance, but as theindustrialization of agriculture leading enterprise, agricultural listed companies shouldplay a positive guiding role in developing of the agricultural industrialization in ourcountry. Does the behavior of "deviation from agriculture" help national agriculturalindustrialization development?Based on these problems, this paper is the theoretical and empirical studies of thesituation of agricultural listed companies’"deviation from agriculture" management.Firstly, this paper has literature review and theoretical analysis, and expounds thetheory of business diversification, agricultural listed companies’"deviation fromagriculture" management and business performance, and reviews the scholars’ theoryand empirical studies in these aspects. Based on this work, this paper puts forward thehypotheses.Then, the paper makes samples of agricultural listed companies in Shanghai andShenzhen stock exchange from2009to2011. Through the descriptive statisticalanalysis, mean analysis, factor analysis, comparative analysis, correlation analysis andregression analysis methods, this paper compares the business performance between"deviation from agriculture" and "non-deviation from agriculture", and analyzes therelationship between the agricultural listed companies’"deviation from agriculture"management and enterprise performance, enterprises’ profit ability, debt paying ability,asset management ability, capital stock expansion ability as well as the enterprisegrowth ability. Through the empirical analysis, this paper draws the followingconclusions: one is that "non-deviation from agriculture" kind of agricultural listedcompanies’ business performance is better than the "deviation from agriculture" kind of agricultural listed companies’ business performance; The second one is thatagricultural listed companies’"deviation from agriculture" management shows asignificantly negative correlation with the enterprise performance, capital stockexpansion ability, and asset management capacity.Finally, according to the empirical study conclusion, this paper puts forward thepolicy proposal from agricultural listed companies and government. To improveagricultural listed companies’ operating situation and business performance, not onlyneeds agricultural listed companies’ efforts, but also needs the support of thegovernment. Agricultural listed companies should regulate their corporate governancestructure, and improve the modern enterprise system. Based on their main business, itcan improve the core competition ability. They can implement the industrializedoperation of agriculture and longitudinal diversification. The government should setup the supervision of agricultural listed companies, and improve the way ofagricultural preferential subsidies, and increase agricultural listed companies’ illegalcost.