Study On The SGR Of Agricultural Listed Companies In China

Agricultural quoted companies play an dominant role in agricultural industry, being the special companies among quoted companies in China at the same time. The financial growth and the value enhancement of agricultural quoted company directly affect the related agricultural industry. Therefore, the government formulates a series of supportive policies, and people expect largely from the stability and the value assessment of these companies. However, the reality is not that optimistic. On the one hand, the government is consistently being supportive to these companies with fiscal and monetary policy. On the other hand, these companies take advantages of privileges and subsidies of quoted company and agriculture supporting policy to engage in non-agricultural business, according to the self-interest principle. They spare no effort to get rid of the current situation of low output efficiency in weak industry, but it turns out to be no improvement in either operating performance or ability of financial growth. Based on this point, the report will analyze the problem exist in the growth of agricultural quoted company and put forward policy advices.Based on clarifying the research findings of related experts and the definition of relevant concepts and research scope, this report is intended to study on sustainable growth mechanism and value idea of corporate finance, and then further the study on agricultural quoted company’s financial sustainability and targets of value growth.First of all, the report will review for some relevant domestic and international document, find out some blank space to study, come up with research method and idea, and construct the research framework.After that, the report will theoretically define the concept and the objectives of sustainable growth of corporate finance, and propose the adoption of EVA an Tobin’s Q to measure the internal and external value of agricultural listed company and their correlation with financial sustainability. Thirdly, the report will theoretically and empirically analyze the impacts of the government’s fiscal, monetary and agriculture support policies, non-agricultural operations, and corporate ownership and governance structures on earning capacity and sustainability of agricultural listed company.At the fourth stage, the report will employ STATA, SAS and some other empirical analysis method to examine the main factors that affected the sustainability of agricultural listed and their action principle, based on the though of revenue, profit and value increase.Finally, a conclusion of previous research and a proposal of policy advices will be given.The main conclusion of this research is:Firstly, there is a marginal effect that relevant policies have on the improvement of sustained growth ability of corporate finance and the fulfillment of increase in value. And there is no substantial advance in operating performance of agricultural listed company, even with problems existing in the operating efficiency and financial policies. But there is an marked fluctuant incline in the actual growth. It can be quite dangerous if resource allocation fail to keep up with it. In addition, findings in pair analysis shows that non-agricultural operation neither augmented the operating performance nor the financial growth. Agricultural listed company which switch to operate another business did not take the full account of the bottleneck and the constraint of technology, threshold, capital, risk, management, etc. At last, there are, indeed, some enhancements in the ownership and governance structure of these companies. But the size of board of directors, independent director and other control mechanism have an rather fractional influence on financial sustainability.It is advisable that the government, as well as the company itself pay more attention to investment budget, thus essentially promoting the company’s operating efficiency. And it is also be of great importance to arrange the financial policy and allocate the resources rationally, and review the problems of the size effect of listed company’s board of directors and the problems of the nominal independent director.