Research On The Impact Of Diversification Of Agricultural Enterprises On The Growth Of Enterprises

When the camp by the scale reaches a certain degree, many companies will choose to implement more diversified by business strategy. Diversified business means that companies develop their outside business through the existing business. Mostdomestic companies have implemented diversification,especiallylisted companies, by virtue of its wide financing channels, pathways and more funding is relatively easier, have begun to expand its business scope and scale of operation, the implementation of diversification strategy. Agricultural listed companies is one of them. As the basement of national economic, agriculture plays an important role in entire country's social economic. The current level of agricultural development is lagging behind, most still remain in the traditional extensive agriculture development stage, the domestic economy also requires thatthe development and transformation of agriculture must be implemented.Industrial transformation and upgrading is the way forward for the development of domestic agriculture. Some enterprises expand rapidly during industrial diversification. However, many enterprises ignored its original main business when developing its other business, resulting in a more serious "Departing from agricultural operations " business phenomenon. So if diversification can improve its value, can make better business growth, its really a question.According to the phenomenon that agricultural listed companies generally implement diversification strategy, the study will select 47agricultural listed companiesin Shanghai and Shenzhen. Based its 2012 to 2014 related data,the paper will analysis the influence of diversification to business growth. On the basis of existing related articles, the paper will use factor analysis to constructsystem of growing evaluatio and to score the sample company. The paper will use Shannon index as a more diversified business by balancing the amount of degrees of indicators, and use descriptive analysis, correlation analysis and multiple regression analysis to find the relation between Diversification and Growth degree.Studieshave shown that:agricultural listed companies, the higher the degree of diversification, lower growth;Comparingagriculture-related diversified listed companies, non-implementation of related diversified business have a lower growth; The more other industry agricultural listed companiesinvolvc,the lower growth it will have.For the above conclusions, suggestions of this paper is:firstly enterprises should develop core competitiveness of the main industry;Second, enterprises should be cautious to choose diversification;Inaddition, companies should constantly improve their own management level; Finally, strengthen agricultural development and transformation, rapid realization of economies of scale agricultural enterprises.