A Research On Financial Support For The Development Of Agriculture And Animal Husbandry In Northwest China

This paper studies the effects of different financial support methods on the development of agriculture and animal husbandry industry in northwest China.Firstly,on the basis of reviewing the existing literature and relevant theories,the article find out the internal mechanism of financial support for the development of the industry,and holds that promoting the formation of funds,optimizing resource allocation and strengthening risk control are the effective ways.Secondly,combined with the status quo of financial support for the development of agriculture and animal husbandry in northwest China,the article summarized financial support ways into four categories: credit support,equity support,government subsidies and other support,and introduced specific support measures.Thirdly,it goes to the empirical analysis.So we selects 45 National Equities Exchange and Quotations(NEEQ)listed and 28 A-share listed farming companies in the region,collects their panel data from 2014 to 2017,and a multiple regression model is constructed to study the relationship between four different financial support ways and enterprise performance.Finally,according to the results above,the paper provides suggestions for policy formulation and relevant guidance for enterprise operation and management.The main conclusions of this paper are as follows:(1)The order of the scale of financial support from big to small is: equity support,bank credit support,commercial credit support and government subsidies.(2)Different types of credit support have different effects.Both the effects of commercial credit support and bank credit support vary with different types of enterprises.Bank credit support has a positive impact on the business performance of agricultural and animal husbandry enterprises listed on the NEEQ,while negatively correlated with the business performance of those listed on the A-share market.This paper argues that this is mainly related to the cost of capital and the different profit margins of enterprises in different life cycles.(3)Equity support has a negative impact on the business performance of farming and animal husbandry enterprises in northwest China,which may be related to the current excessively high equity financing in the region.(4)Government subsidies has a negative impact on the business performance of listed agricultural and animal husbandry enterprises on the NEEQ,but has no significant impact on the business performance of A-share listed ones.This result may be because of the scale of government subsidies,unreasonable subsidy policies and etc.