An Empirical Study On The Impact Of Capital Structure On The Performance Of Listed Agriculture Companies

Agriculture is the foundation of the national economy, it has special status that can't be replaced by other industries, from central file to a series of agricultural policy, they all reflect the national attention on agriculture. The agricultural industry has its own characteristics, such as the high benefit rate of agricultural subsidies, the long investment cycle under the restrict of natural condition,the high degree of industrial relevance. At present, there are still many problems about capital structure of agricultural listed companies, such as inadequate internal financing,irrational debt structure, the high short-term debt,preference for equity financing and so on. In the absence of tax, while MM theory consider that capital structure has no effect on corporate performance, in reality, there is a close relationship between capital structure and the value of the company, it has a certain significance by optimizing the capital structure of listed agricultural companies to improve operational performance levels.This article study the impact of the capital structure of agricultural listed companies to operating performance through empirical analysis. According to the Commission's 2015 second quarter results of listed companies in the industry classification, the article selected panel data of the following 10 agricultural listed companies from 2005 to 2014 as sample, such as LPHT, Denghai Seed, Yasheng, IFAD seed industry, Dunhuang Seed Co., Xinnongkaifa, Universal Denon, pear shares,Xinsaigufen, the Great Northern Wilderness. From the perspective of profitability, the paper chooses ROE to measure operating performance and selects Stake of the largest shareholder of the square, the proportion of the top five shareholders, the proportion of the top ten shareholders and state-owned shares to measure the ownership structure. At the same time, it selected assets debt ratio, current liabilities ratio, long-term debt rate debt to measure debt structure.First, each index descriptive statistical analysis and correlation test are used. Whether the individual fixed effects model or the individual random effects model is established, it depends on Hausman test. According to the test results,individual fixed effects model should be established. Finally,it uses white section weighting to estimate. The following is the result: at the 5% significance level, asset-liability ratio and operating performance negatively correlated; at the 1% significance level, stake of the largest shareholder of the square, the proportion of the top ten shareholders and operating performance positively correlated; there is no significant correlation between current liabilities ratio, the proportion of state-owned shares and operating performance. Lastly, it makes recommendations to optimize the capital structure through the conclusions, such as promoting actively the development of corporate bond market, improving the relationship between banks and enterprises, in order to enable enterprises to maintain a certain degree of concentration of ownership, it can adjust the ownership structure, relative controlling shareholder while the presence of other large shareholders.