The Research On The Performance Of The Government Subsidie:Based On The Perspective Of Agricultural Listed Companies

Agriculture is an important production sector in China's national economy.It is the source of human food and clothing,the basis of survival,and the primary condition for all production.The Party Central Committee has always regarded the issue of "agriculture,rural areas and farmers" as "the top priority." Since 1982,the Chinese government has successively issued 20 "Central No.1 Documents" around the "three rural issues." In response to the "three rural issues",the government has introduced a series of policies and preferential methods including price subsidies,tax incentives,tax cuts and tax exemptions,and fiscal returns.These policies have given the government a reasonable coat.The "Proposal of the Central Committee of the Communist Party of China on Formulating the Thirteenth Five-Year Plan for National Economic and Social Development" proposes to vigorously promote agricultural modernization and focus on building a modern agricultural industrial system,production system,and management system to improve agricultural quality efficiency and competitiveness.This means that in the next five years and longer agricultural scale,industrialization,and modernization development,agricultural companies must assume more development responsibilities.The scale of government subsidy funds obtained by Chinese agricultural listed companies has continued to expand.The government has increased support for agricultural listed companies and has wider coverage.The operation of agricultural listed companies is still worrying.The number of agricultural listed companies is relatively small.The listed companies in Shenzhen and Shanghai listed companies(A shares)accounted for only 5.26% of the total number of listed companies,with a small number and small scale,and the overall operation was not good.Agricultural listed companies gradually became the weak sector of the A-share market.This is not very commensurate with the industrial orientation of China's strengthening of its agricultural basic status.On the one hand,governments at all levels are constantly expanding their support for listed agricultural companies.On the other hand,agricultural listed companies have gradually become a weak sector of the A-share market.One consequence of this striking contrast is that the effectiveness of government subsidies for listed companies in China has caused doubts among scholars.Therefore,the research on the performance of government subsidies for listed companies in agriculture has become a very important research area.The government grants subsidies to agricultural listed companies based on various motives,but the relevant theoretical research on the effects of government subsidy policies is not comprehensive enough,and the conclusions are inconsistent.In this context,it is necessary to study the policy effects of government subsidies for listed agricultural companies.The research object of this paper is the policy effect of government subsidies for agricultural listed companies.It analyzes and summarizes the theoretical basis of government subsidies,the agricultural subsidy system and the status of government subsidies obtained by Chinese agricultural listed companies.Based on the analysis and summary of the literature,From the perspective of the company and the government,it analyzes the behavioral motives of government subsidies,and then summarizes six factors that affect government subsidies.Then,from the three dimensions of business performance,social performance and environmental performance,it demonstrates the impact of government subsidies on listed agricultural companies.This builds an analytical framework for the effects of government subsidy policies.On this basis,166 agricultural listed companies were selected from the listed companies in Shanghai and Shenzhen A-share companies.The descriptive statistical analysis revealed the status of government subsidies for listed agricultural companies.With the help of fixed effect model and random effects model,the effects of government subsidies on the performance of agricultural listed companies were examined from three dimensions: business performance,social performance and environmental performance.Further suggestions on improving the performance of government subsidies for listed companies in agriculture were put forward.There are four innovations in this paper: First,the core content of this study is to judge the policy effect of agricultural listed companies obtaining government subsidies.Compared with most previous studies,only from a single performance perspective,this study attempts from business performance and social performance.And the three dimensions of environmental performance,in order to more comprehensively judge the policy effects of government subsidies.Second,,from the perspective of government Sub policy implications of ageing,this paper studies the operating performance defined as short-term business performance(measured by return on assets)and long-term operating performance(measured by average adjusted return on equity),reveals the government subsidies of agricultural listed companies to promote the short-term performance,but reduces the long-term operating performance,it is concluded that the government Sub policy of agricultural listed companies is only part of the "blood transfusion" policy conclusions.Third,from the employment,technological progress,fiscal revenue,and corporate social responsibility four indicators to examine the social consequences of government subsidies,in this paper,the study overall negative affect the operating performance of listed companies,but to the agricultural listed companies in the two aspects of promoting employment and promote the r&d of social performance has a positive effect,it is concluded that the agricultural listed companies government Sub policy in terms of social performance is the effectiveness of the conclusion.Fourth,from the environmental performance of this new perspective to examine the effect of the policy of government subsidies,government Sub is a country of agricultural enterprises to invest in environmental protection or improvement of a kind of support and reward,encourage enterprise through improve their own technical level in order to achieve a minimum of environmental pollution of motive,is the enterprise to a higher level of environmental performance to relevant government departments for more government subsidies.In this paper,we study the main conclusions are: first,in order to make the system the research of the effect of the policy of government subsidies,this article from the perspectives of both enterprises and government to analyzing the motivation of the government subsidies,and then summarized the six factors affecting the government subsidies,and from the business performance,social performance,environmental performance three dimensions to demonstrate the influence of the government subsidies for agricultural listed companies,thus formed the analysis framework of government Sub policy effect,it is the core of this paper is the theoretical basis this article empirically.Second,from the perspective of industry,region,property right and form,this paper analyzes enterprises in China and finds that listed agricultural enterprises in China have great differences.According to enterprises mainly include five industries.This paper shows that there are significant differences in government subsidies received by various agricultural sub-industries,among which the level of government subsidies received by listed agricultural,forestry,animal husbandry and fishery companies is significantly lower than that of other agricultural sub-industries.The distribution of government subsidies among agricultural listed enterprises in different regions is significantly different,and the property rights of agricultural listed enterprises do not affect their access to government subsidies.Third,from the perspective of short-term business performance,this paper believes that government subsidies related to assets are negatively correlated with short-term business performance of listed agricultural enterprises,while government subsidies related to earnings are positively correlated with short-term business performance of listed agricultural enterprises.From the perspective of long-term operating performance,this paper studies suggest that the government subsidies pertinent to assets and government subsidies related to earnings,long-term operating performance of listed agricultural companies is the negative influence,in the long run,government subsidies to reduce the operating performance of listed agricultural companies,this reflects our country agricultural listed companies use the low efficiency of government Sub funds,government Sub policy of agricultural listed companies did not achieve the desired business objectives.Fourth,the social performance of listed agricultural enterprises is defined from four perspectives.It is found that different types of government subsidies have different influences on the social performance of listed agricultural enterprises.From the perspective of employment promotion,the government Sub related to assets promotes the employment of listed agricultural enterprises,while the government Sub related to income has no promotion effect on the employment of listed agricultural enterprises in that year,but has a significant promotion effect on the employment of the next year.This shows that government subsidies play a role in promoting the increase of regional employment rate,and the policy objective of "protecting employment" of government Sub policies is realized in listed agricultural enterprises.From the perspective of promoting r&d investment,it is found that both the government Sub related to assets and the government Sub related to income promote the increase of r&d investment of listed agricultural enterprises.The government Sub has an "incentive effect" on r&d investment of listed agricultural enterprises,which reflects the realization of the policy objectives of government r&d Sub in listed agricultural enterprises.Fifth,government Sub is a kind of support and reward for the state to invest in or improve the environmental protection of agricultural enterprises,which is conducive to stimulating the motivation of enterprises to achieve the minimum environmental pollution by constantly improving their technical level.Therefore,enterprises.In order to obtain more government subsidies,enterprises must continuously improve their technical level to improve the damage to the environment,that is,enterprises need to obtain more government subsidies from relevant government departments through a higher level of environmental performance.All in all,government subsidies for long-term operating performance of agricultural listed companies did not play a role,only for short-term business performance up to promote role,reflects the Chinese government subsidies for agricultural listed companies is a kind of "financial blood transfusion" policy,but from the two aspects of promoting employment,r&d investment,the social performance and environmental performance has played a positive role.However,from another perspective,from the point of the policy goal itself,the starting point of government Sub policy of agricultural listed companies focus on the social value of agricultural listed companies,and agricultural listed companies to undertake a certain social functions,agricultural listed companies comes at a cost,which affect the agricultural listed companies operating performance for a long time.