The Research Of Diversification And Its Influencing Factors Of Agricultural Listed Companies

Modern agriculture is an important part of our national economy, which is the basic industries to solve hundreds of millions of people’s livelihood problems. Research shows that the development of modern agriculture needs to realize agricultural modernization. As agricultural industrialization leading enterprises, agricultural listed companies play an important role in building a new type of agricultural management system. At present, Chinese agricultural listed companies’scale is growing. Because of the contradiction between inherent "consideration" of agriculture caused by environment, climate and other natural factors and capital’s natural "profit-driven", the phenomenon of diversification among agricultural listed companies is increasingly highlight, in order to decentralize management risk, obtain higher profits, promote enterprise fast growth, so as to avoid risk of failure engaging in single agricultural business.Domestic theoretical circle starting the research on the problem of our enterprises’diversification began form the middle 1990s, more than half a century later than abroad. Research about domestic agricultural listed companies’diversification mostly focused on the motivation of diversifying and the relationship between diversification and enterprise performance, giving priority to empirical research, which the conclusions are different. In this paper, we have a detailed analysis of performance of agricultural listed companies under different kinds of diversity and different degree of diversification, further explore the causes of these phenomena, and the influence factors of their diversified business. This analysis can provide some useful theoretical reference and practical enlightenment for the development of diversification strategy, and is beneficial to solve the problem of agricultural listed companies’management strategic choice, so that they can develop toward the direction of new type of agricultural management system.Through this research we mainly draw the following conclusion:First, when only engaged in related diversification, the enterprise performance negatively related to diversification; But after choosing unrelated diversification strategy, the degree of overall diversification and related diversification roughly shape reverse "U" relationship between enterprise performance.Second, circulation of shares, free cash flow, and stability benefit are the main factors influencing the degree of our domestic agriculture listed companies’diversification; At the same time, agricultural business profitability and stability benefit significantly negative influence the degree of the unrelated and the overall diversification, but circulation of shares have a significant positive impact on related and unrelated business strategy; agricultural business profitability significantly positive influence its related diversification strategy, but the proportion of independent directors have a significantly negative impact.