Study Among The Agricultural Listed Companies’ Ownership Structure, Diversification And Corporate Performance

Agriculture is the foundation of the national economy in China,While agricultural listed companies are the leader of agricultural industry, which have the important guiding significance on the future development of Chinese agricultural industry. In recent years, the government take a lot of favorable policies to promote agricultural industrialization process actively, however, during the process of actual operation, many agricultural listed companies rely on "farmers" hat to enjoy preferential policies and then raise much money into non-agricultural industry extensively, which has abandoned the direction of the agricultural development, and formed the serious "back agriculture" phenomenon.So,how did diversification levels effect upon management performances of agricultural listed companies in China at present? Whether ownership structure will promote diversification of agriculture listed company. All those problems should be resolved as soon as possible.This paper defines the agricultural listed companies in China based on the theory of diversification,ownership structure and corporate performance all over the world at first, and then selects the Shanghai and Shenzhen A-share agricultural listed companies’118 samples as observations between 2010 and 2013.Based on that,this paper analysis the current situation of agricultural listed companies from aspects of the regional distribution of industry,ownership structure,corporate performance and diversification conditions.Analysis results show that agricultural listed companies have imbalance industry and regional distribution; Equity scale is relatively small, equity is highly concentrated in the top five shareholders, equity structure is not reasonable; The level of performance is low and has a big gap between the companies. Agricultural listed companies are more diversified. In the face of the above situation,In the process of empirical research, this paper select entropy index, industry virtual variable and business units to measure diversification levels of agricultural listed companies and select managerial ownership, ownership concentration and the proportion of state shares as a measure of equity structure:and measure the performance of agricultural listed companies with Tobin Q value and total return rate of assets.This paper studies the relationship among the agricultural listed companies’ diversification,ownership structure and corporate performance with descriptive analysis, correlation analysis and multiple regression statistical method.The results show that:(1) the relationship between agricultural listed companies performance and diversification levels is not significant.The diversification will not promote the growth of agriculture listed companies’performance, and it may even bring negative effect.(2) The ownership concentration showed a significant negative correlation with diversification levels of agricultural listed companies,which suggests that if the agricultural listed companies’ownership concentration is higher,the binding force of managers will be greater and the diversification level will be lower. (3)There is a significant positive relationship between managerial ownership and diversification levels of agricultural listed companies.This explains the existence of agency.costs to some extent,and demonstrates hypothesis that managers diversify for self-interest,managerial ownership does not become a effective mechanism of constraint management behavior. (4) The proportion of state shares is positively related to diversification levels of agricultural listed companies. Because agriculture listed companies’state-owned shares are low, it lead to lack of supervising management and diversification levels is on the rise.And finally propose targeted policy Suggestions:(1) Agricultural listed companies should choose diversified industries carefully and then concentrate superior forces to foster the core competitiveness.(2)Optimization of agricultural listed companies’equity structure.