An Empirical Study On The Relationship Between Diversification And Economic Performance Of Listed Corporations Of China

Agriculture is the basic industries of China’s national economy, as a agricultural leading enterprise, the choice of business strategy management properly will be related to the rise and fall of the whole agricultural industry. However, due to its own defects of consideration, the external environment, economic policy, investment cycle has seriously affected the agricultural listed companies to operate, low agricultural industry risk big profits at the same time, so in order to make profit,all began to diversification strategy of listed companies, by conducting a number of business to spread risk and increase performance. About whether diversification can really improve agricultural listing Corporation performance, based on consideration of this issue, This paper carried out deeply research about diversification.Diversification is the enterprise development to a certain degree, a management should take sustainable development and obtain more profits, or strategy. And the diversification of the development of the company is good or bad, is still inconclusive. In the early days of the Europe and America and other developed countries and regions, a large number of enterprises into the diversified development of the wave, and a Large-scale business soon, but soon found in the process of diversification of the diversified business, this makes a lot of companies will have to adjust strategy, focus on the management of leading industry. And with the market economy development in China, the thought liberation, economic open gradually, there are more and more companies start down the path of diversification, hope that through more channels to explore a new way to gain new economic growth point of economic operation. But faced with complicated market competition environment, different industry, different companies adopted different strategies to cope with the fierce market competition, some companies have succeeded to the road of diversified development, but some companies due to the diversified development of the energy dispersion is difficult to deal with, or capital chain rupture can not return, it finally ended in failure. Theories about diversity research still did not give the exact word, needs further research.Combining domestic and abroad on agricultural listing Corporation diversification and management performance theory, which the data from 2011 to 2013 on agricultural listing Corporation published financial statements as a sample of empirical analysis, the study on the relationship between China’s agricultural listing Corporation diversification and management performance. In the empirical research process, the Beh Finn Dahl index to measure the degree of business diversification, business performance using the rate of return on total assets (ROA), the rate of return on net assets (ROE), earnings per share (EPS) three indicators to measure,while the asset scale, asset liability ratio, growth as controlling variables. Then we use statistical methods of correlation analysis and regression analysis, the empirical analysis of diversification and corporate performance in different degree. The research results show that, the agricultural listing Corporation general diversification degree and earnings per share, net asset earning rate and total assets yield was negative correlation significantly, finally, and on this basis, combined with the current practice of diversification of agricultural listing Corporation in China and puts forward some corresponding suggestions.