Research On Diversification Performance Of New Hope Group

Private agricultural listed companies are the combination of private agricultural mark et with securities market,and they play an important role in achieving the goal of agr iculture industrialization and marketization.but because of the inherent risks of agricult ure itself,these cause lead most private agricultural listed companies choose diversific ation to pursue the market performance and the successful transformation of enterpris es.However the private agricultural capital market two levels differentiation of divers ification effect is deepening.The continuance of this phenomenon is not conductive to the healthy development of the entire agricultural economy.Coupled with the existing concern based on the impact between corporate governance mechanisms and diversifi cation performance is not high.Especially private agricultural listed companies that co ntain weak nature characteristics and relatively low governance model,and its diversifi cation need to match with the market high-quality corporate governance.Therefore,it is very necessary to research the diversification of private listed companies based on the perspective of corporate governance mechanismand provide effectiveexperience.Firstly,this paper describes the background and significance of the research,and then r eviews the domestic and foreign research results and present situation of diversified management of listed companies.secondly,this paper introduce the theoretical basis of diversification and corporate governance,in addition,define the concept of key nouns.Thirdly,analyse status of private agricultural companies and go deep into diversificatio n status research of New Hope Group,then quantify the level of corporate governance based on the corporate governance mechanism elements,at the same time,in the con trol of other factors affecting the performance and make regression analysis between diversification performance and corporate governance indicators,to test if the promotin g corporate governance level is one of the important reasons for the successful divers ification.Fourth,make suggestions for private agricultural listed companies based on its diversification status and results.This paper found that.First,the scale of development,corporate governance structure,d iversification and market performance of private agricultural listed companies remains to be improved.Second,New Hope Group diversification effect issignificant,exceptthe dairy business,other diversified business benefits significantly.Third,New Hope Group corporate governance structure is maturing,except the ownership structure,equity in centive and restraint mechanisms and internal audit efficiency still need to be further optimized,other elements of corporate governance mechanisms remain a healthy situa tion.Fourth,the regression analysis that in control of other factors which effect diversif ication shows,New Hope Group diversification is benefit from improving corporate go vernance level.This paper summarizes the status and the study results to put forward the following suggestions.First,in options of the new field about diversification,private agricultural listed companies should choose more relevant industries in the model of strategic di versification rather than non-relevant industries for short-term gains in the model of s peculative diversification.Second,in the corporate governance mechanism,agricultural listed companies develop the diversification simultaneously should to take into accou nt if the level of governance mechanisms achieve the appropriate degree of matching,only the high-level corporate governance mechanism that high match with market eco nomy will become the reserve forces for private agricultural listed companies sucessf ul diversification.Third,agricultural listed company should attach important to the devel opment of basic industries,to avoid neglect or deviate from the basic industry constr uction phenomenon and by developing the basic industries to promote diversified busi ness development.Fourth,agricultural listed company should pay attention to the co mpany's capital management,private agricultural listed companies are faced with fina ncing and new areas of expansion difficulties,the higher capital use efficiency and lo wer capital use costs are so crucial.