An Empirical Study On Diversification And Performance Of Listed Agricultural Companies In China

Since Ansoff(1957)put forward the performance results of diversification strategy,there has been widespread controversy in theoretical circles.There are three viewpoints in traditional diversification performance: negative theory,positive theory and irrelevance theory.In recent years,there has been a moderation theory and the view that there may be endogenous problems in diversification performance research.Although agriculture is recognized as a weak industry,there are also disputes about the diversification performance of agricultural enterprises in theoretical circles.What is the relationship between diversification and performance of agricultural listed companies in China?In order to answer this question,this paper summarizes the existing literature and finds that they have unreasonable requirements for the research time and sample size.In order to reduce the impact of periodicity on the financial indicators of agricultural enterprises,this paper chooses a time span of up to 10 years;in order to make the research sample more in line with the characteristics of the agricultural industry,this paper strictly follows the criterion of engaging in agricultural management,and screens agricultural listed companies according to the industry classification guidelines of the Securities Regulatory Commission.The purpose of this paper is to make the selected samples better reflect the characteristics of agricultural business activities,and to draw more accurate conclusions about diversification and performance of agricultural listed companies in China.For the diversification of agricultural listed companies,according to the way of agricultural subdivision industry,this paper makes a detailed study of the business of agricultural listed companies.The study finds that,from the perspective of diversification types,Chinese agricultural listed companies tend to be more diversified than non-diversified businesses.Among the horizontal and vertical diversification,Chinese agricultural listed companies are more keen on the vertical diversification strategy.Specifically,the listed companies of agriculture,forestry,animal husbandry and fishery tend to extend their business to the upstream industry and the downstream agricultural and sideline food processing,pesticide and fertilizer business;the listed companies of agriculture,forestry,animal husbandry and fishery tend to extend their business to the downstream wholesale and retail industry;and the agricultural,forestry,animal husbandry and animal husbandry tend to the downstream agricultural and sideline food processing(slaughtering)and food processing(manufacturing).The empirical analysis part adopts the random effect model of panel data,and carries out the corresponding endogenous and robust testing.It is found that there are correlations among management expense rate,financial expense rate,gross profit rate,net sales interest rate,total asset turnover rate and asset-liability ratio,and the performance of Chinese agricultural listed companies.Diversified management decision-making is only a kind of decision-making.Whether a decision-making is conducive to the improvement of enterprise performance depends not on the type of decision-making,but on whether the decision-making is reasonable or not.Whether it is conducive to the development of enterprises.Two important conclusions are drawn in this paper.Firstly,the current diversification choice of China's agricultural listed companies is rational;secondly,the correlation between diversification strategy and performance results of China's agricultural listed companies is not significant.