Ownership Structure,Diversity And Agriculture Listed Company Performance Research

Diversification development was the core of enterprises' strategic management.The study of diversification strategy was one of the frontier problems in corporate management,risk control and industrial organization theory.Lots of listed companies had started diversified businesses.Agricultural listed company was the representative of the leading enterprise of advanced agricultural productivity in China.However,the production methods of agriculture had specific characteristics.So,agricultural listed companies had launched more diversified development strategy to avoid operational risks.However,the diversification of agricultural listed companies often led the declined performance.This paper had introduced the factor of ownership structure factors into the diversification performance effects on agricultural listed companies and analyzed the influence of ownership structure and diversification to performance based the analysis path of ownership structure,corporate governance and corporate performance.Firstly,the paper had analyzed recent situation of the development of the agricultural listed companies in China and focused on the characteristics of the current agricultural listed companies in China,such as,overall scale,the distribution of segments,ownership structure and other characteristics by using the panel data from 2001 to 2015.At the same time,we had analyzed the use of diversification index to measure the degree of diversification of agricultural listed companies in China and exhibited the performance of them.Secondly,we had analyzed the mechanism of ownership structure of corporate diversification through the intermediary variables which affecting the performance of listed companies.We had revealed the interaction mechanism between ownership structure,diversification and China performance of the listed agricultural companies and provided theoretical proposition to be tested.Thirdly,based on the empirical analysis,this paper had analyzed the influence of ownership structure and diversification on the performance of agricultural listed companies and revealed the inter-mediating effects of ownership structure on diversification on the performance of agricultural listed companies.Fourthly,we also analyzed the reason of"Diversification Discount" basing on the classic case of diversification of agricultural listed company and elaborated the development path of diversification strategy.The paper had shown that firstly,Diversification will have a negative impact on the performance of agricultural listed companies.Secondly,there were inverted U relationships between ownership structure and corporate performance.The ownership concentration which was in a reasonable range would improve business decision-making efficiency and improve performance and enhance the operating performance.While,if the equity concentration had exceeded a threshold value,the excessive equity concentration would reduce the performance.Thirdly,the degree of diversification would increase the marginal strength of the negative impact of the ownership structure to performance.There were partial intermediary effects of diversification on the ownership structure to agricultural listed companies.Lastly,the case study had shown that the managers who owned agricultural listed companies which lacking of management incentives would be eager for diversification to find maximization of self-interests and induce the executives to seek their own interests through diversification strategy and lead the declining of firm's performance,finally.Therefore,the domestic agricultural listed companies should give priority to the development of the main business.At the same time,the companies should implement the reasonable diversification strategy and increase the incentive of managers appropriately in order to enhance the synergy between management and shareholders and improve performance.