Study On The Relationship Between Diversification And Enterprise Performance Of Xinjiang Agricultural Listed Companies

Diversification is a method that Enterprises achieve profitability through the production of different products.when enterprises expansion to a certain level,Enterprises would choose Diversification as target which is benefit for companies to develop and gaining more returns.In the academic theory,scholars have verified conclusions on the diversification of "premium theory" "discount theory" and "compromise theory".At present,the mainstream theory of domestic and foreign academic circles hold No brief for the application often diversification,Because the method seriously damaged the company's value.Early,most of the diversified companies in the United States have begun to clean up the internal non-core business,showing a development situation,"return to nuclear",and emerging economies,enterprises who are enhancing diversification also encountered difficulties and setbacks,it shows a terrible trend of contraction.Agriculture is an important part of China's national economy,and Xinjiang is a large agricultural province,then the development of Xinjiang agricultural listed companies have an crucial impact on the entire development process of agriculture.However,with the development of Xinjiang agricultural listed companies,many problems also surfaced.for example,some agricultural companies blind diversification.they use preferential policies to obtain funds into other unrelated industries,the main business development crisis,to avoid the low level of risk,business losses.In addition,with the construction of "Silk Road economic zone",the development of Xinjiang agricultural companies would bring great opportunities and challenges.This research indicates the status quo of diversified management of agricultural listed companies in Xinjiang,and sand scientifically selected enterprise performance evaluation and diversified measures,and used factor analysis and regression analysis to study the relationship between diversification and enterprise performance.Through the discussion on the relationship between the diversification of Xinjiang agricultural listed companies and the performance of enterprises,the following conclusions are given:(1)Xinjiang agricultural listed companies generally adopt diversified business strategy,and most of them use this method on 2-4 industries.(2)Overall,the diversification of Xinjiang agricultural listed companies and business performance has negative relationship.it shows that the excessive expansion would create loss for their company.(3)Xinjiang agricultural listed companies to diversify,it is best to choose to enter the industry with more closely related industries...