Research On The Financial Risk Of Diversification Agricultural Listed Companies

Agricultural listed companies plays a fundamental role in driving the sustainable and stable development of China’s agricultural economy and the social economic development of China’s agricultural industrialization of agricultural operations require listed companies to play a leading role. However, the emergence of agriculture in these listed companies in the growth process of many problems, such as slow development of business scale, companies need to rely on the realization of the growth cycle of the crop production business, which led to instability in the business, is relatively poor profitability problems, these problems are mainly due to the process of agricultural development in the history of our country and industry factors caused. Agricultural listed companies in order to avoid and resolve potential problems and has overcome these risks, and gradually improving economic efficiency, expand and enrich the business scope into agriculture-related or unrelated to their own industries, providing a wide range of products and services. In the process of achieving diversification, the field has a very extensive manufacturing, real estate, services, wholesale and retail trade, transportation, warehousing, and so on, the blind pursuit of economic interests of some companies to achieve even a serious " Back farmers’ problems.Aiming at the above problems, by analyzing the financial data of Shenzhen and Shanghai A-share market, agriculture, forestry, animal husbandry and fishery sector 41 agricultural listed companies, with diverse scholars Wrigley proposed classification method to classify the various enterprise level and type of diversification, while taking advantage of financial risk measurement indicators established risk assessment system. Establish financial risk evaluation model using factor analysis, you can calculate the value of the financial risk diversification four different types of businesses and trends three years, the final analysis of the relationship between the type of diversification and corporate financial risk.Thesis from four aspects to research agricultural diversification of listed companies under the corporate financial risk. First, the development stage of agricultural diversification of listed companies were analyzed. Combining agriculture industry characteristics listed companies, listed companies diversified agriculture development survey stage. Among them, the type of diversification mainly based scholar Wrigley method proposed by these companies into a single business model, the leading business-related business and non-business-related, and analyzes the characteristics of these four types of business. Second, analysis of agricultural listed companies with diversified business relations four types of financial risk arising between. The primary analysis of listed companies in China’s agricultural diversification and potential financial risk evaluation, a comprehensive study of all aspects of financial risk to build a better evaluation system. Third, empirical studies of the relationship between risk management and diversification of agricultural listed companies. Financial risk assessment by the model structure of the sample selected agricultural listed companies empirical analysis, research the relationship between diversification and risk type and explained why. Fourth, conclusions and policy recommendations and research prospects. According to the empirical results, review the selection criteria listed agricultural companies should pay attention to diversification and risk management process of the industry, make suggestions.