The Influence Of Governance Structure On Operating Performance Of Agricultural Listing Corporation

The role of Agricultural listing Corporation in the development of the agricultural industry is very important. The development of agricultural listing Corporation is a successful solution to the problems of agriculture, countryside and farmers in China. However, the structure of corporate governance is the key to the development of agricultural listing Corporation. Although some policies such as split share structure reform, improve the independent director system introduced.It could not effectively make up for the lack of agricultural listing Corporation governance structure. So we elect 34 agricultural listed companies as samples from 2012 to 2014. To fully study the impact of agricultural listing Corporation governance structure on operating performance, so as to find out the problems existing in the governance structure of agricultural listing Corporation in China, in order to put forward effective countermeasures and suggestions to improve the governance structure.Firstly, this paper studies the background,purpose and significance of agricultural listing Corporation, Combed the research ideas and main research contents. Secondly, defines the concept of agricultural listing Corporation, corporate governance structure and business performance, and summed up the research achievements of domestic and international influence of listing Corporation governance structure on operating performance. Thirdly, analysed the agricultural listed company governance structure and operating performance features and their relationship, found the agricultural listed companies governance structure are in a high degree of ownership concentration and dispersion degree is low, the board scale match national basic requirements, the corporate executive compensation is difference and the scale of board of supervisors are small; operating performance has low ability of debt financing, short-term debt risk and equity expansion ability is generally weak, profitability and turnover rate is low. Finally, studied the impact of corporate governance on operating performance of agricultural listed through the empirical analysis. Selected 12 indicators from four aspects of the debt paying ability, capital expanding ability, profitability and operation ability using factor analysis to extract the common factor to construct the comprehensive function to represent the performance; then, studied the influence of governance structure on the performance of agricultural listed company by the method of regression analysis.The results show that:equity concentration and operating performance are significantly positively related, and should increase the degree of equity concentration in the appropriate range. The proportion of independent directors has a significant negative correlation with the operating performance. It is reasonable to control the proportion of independent directors and improve the management ability of independent directors. Executive compensation incentive and operating performance are significantly positively correlated, effective executive incentive can improve the operating performance of enterprises, stimulate the vitality of the management, and promote their goals and business objectives. The size of the board of supervisors and business performance is significantly positively related, the greater the size of the board of supervisors, the better the independence and supervision functions.The following suggestions are put forward in this paper:Agricultural listing Corporation should keep in a certain degree of ownership concentration and ownership structure optimization. To establish the independent directors qualification authentication mechanism, and control the proportion of independent directors, independent directors must put forward several reasonable suggestions for the company per year and accept the supervision of the general staff. To make reasonable executive incentive policy, improve the structure of the board of supervisors, improve the proportion of workers and staff members, establish incentive system to encourage the majority of workers to actively put forward opinions.