A Research Of The Influence Of Diversification To Growth In The Listed Companies Of Agriculture

Agriculture is the foundation of civil economy, and it plays an essential role tosocial stability and economy development. Agricultural listed corporation is therepresentative of advanced productivity, and is the leader power of agriculture economy,so its prolong and stable development has important meaning to promote farmers’revenue and agriculture industrializing, that is, agricultural listed corporation shouldersdoubled missions at the same time, company side and social side. However, in reality,since weakness of agriculture, profit-tending of capital, maximize of corporation value,and so on, many agricultural corporations have began a way of Diversification, some evendeparted from agriculture. Whether or not these questions’ exiting threaten the long-termdevelopment of agricultural listed corporation, and then make a bad effect to thesustainable development of agriculture, there’s no study to this question currently.This article make diversification the starting point, using35company’s data, from2006to2012, studying the influence of diversification to growth, including thefollowing five parts. Firstly quotation. This part will mainly introduce the background,the purpose and the meaning of my study, and then the`study summarization, researchroute and methods, finally point out the probably creative points. Secondly, the theorybasis of the influence of diversification to growth. In this part, depending on the theoryof diversification and growth, I will analyze the function mechanism of diversification togrowth, that includes dispersing risks, achieving cooperation effect, finding new growingpoint of economy etc. Thirdly, basic analysis of agricultural listed companies. This partwill firstly analyze the weakness and social responsibility of agricultural corporations,then studying the current diversification condition, and finally the descriptive analysis offinancial status, so as to make a good foundation for the following empirical analysis.Fourthly, empirical analysis of diversification to growth. On the basis of advancing studyhypothesis,selecting samples and data resources, choosing indexes, making study model,through principal component analysis, I will introduce the Growth condition initially. Thenthrough panel data model, study the influence of diversification to growth. Lastly, conclusionand suggestions. The outcome of empirical analysis reveals that diversification not only can’t promotethe growth of main business, but also hinders the whole enterprise’s growth. On this basis,putting forward the relevant suggestions in order to achieving long-term development ofagricultural corporations: be cautious as to Diversification Strategy. The managementshould try their best to find the way to promote the company’s growth and the sustainabledevelopment of agriculture.