Study On Factors Of Agricultural Corporation Investment Behavior

Currently, China’s investment behavior of agricultural corporation is facing severe practical difficulties that generally low profit margins due to investment in the agricultural sector, agricultural corporation often choose to invest in non-agricultural sectors, resulting in an outflow of agricultural funds, while investment in the non-agricultural sector is also limited by various factors, thus resulting in agricultural corporation in a dilemma situation. Therefore, this paper study on investment behavior of agricultural corporation, in order to improve the efficiency, promote its sustainable and healthy development of agricultural corporation.Firstly, agricultural corporation, business investment, ownership structure and financing constraints such concepts are described, followed by business investment, agency, financing constraints theory, analyzes the current situation and the investment behavior of agricultural corporation. Then, this paper built an econometric models about equity and financing conditions, supplemented by enterprise scale and corporate governance-related conditions, analyzes the impact of factors on investment behavior of agricultural corporation, meanwhile Gumuzhen Bio-technology Co., Ltd, Shangdong Denghai Seeds Co.,Ltd, Sichuan New Hope Agribusiness Co.,Ltd. and Haikou Agriculture & Industry & Trade(Luoniushan) CO.,LTD as an example a case study. And finally,this paper draw the following conclusions:major shareholders are often able to determine the investment behavior of agricultural corporation, financing restrictions are realistic problems, financing constraints and corporate governance of agricultural corporation affected investment behavior in different aspects and degrees. Thus, we propose the following policy recommendations:the establishment of a large shareholder oversight and checks and balances; expand financing channels, get rid of financing restrictions; strengthen financial management and control, and reduce financing constraints; strengthen internal controls, improve corporate governance.