Diversification and Capital Cost of Agricultural Listed Companies??"Based on External Financing Analysis

DOI

10.2991/icmesd-18.2018.157How to use a DOI?

Keywords

Diversification, Capital cost, Agricultural listed company.

Abstract

The diversified operation of the agricultural listed companies can reduce the business risk of the enterprises to some extent，so as to have an impact on the capital cost of the enterprises . This paper studies the relationship between diversification and capital cost of agricultural listed companies. Through the empirical research on 412 valid data of agricultural listed companies in Shanghai and Shenzhen from 2005 to 2016. This paper makes an empirical study on the relationship between the diversification of agricultural listed companies and the cost of capital. The results show that the degree of diversification of agricultural listed companies is negatively correlated with the cost of debt, common stock capital and weighted average capital cost. On the basis of this conclusion, this paper provides some basis for our agricultural listed companies to choose the strategy of diversification, and puts forward some suggestions for the development direction of our agricultural listed companies.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Xue-Xia Xu
AU  - Ya-Wen Liu
AU  - Jie Ju
AU  - Sun-Lei Yang
PY  - 2018/05
DA  - 2018/05
TI  - Diversification and Capital Cost of Agricultural Listed Companies??"Based on External Financing Analysis
BT  - Proceedings of the 4th Annual International Conference on Management, Economics and Social Development (ICMESD 2018)
PB  - Atlantis Press
SP  - 917
EP  - 922
SN  - 2352-5428
UR  - https://doi.org/10.2991/icmesd-18.2018.157
DO  - 10.2991/icmesd-18.2018.157
ID  - Xu2018/05
ER  -