Performance,Subsidies And Non-agriculturalization Of Agricultural Listed Companies

Agricultural listed companies,as the organization form of the advanced productive forces of agriculture in China,is the leading force to promote the development of Chinese traditional agriculture to modernization,and is also playing an important role in driving the development of China's agricultural industrialization.However,due to the limits of inherent fragility of the agriculture,there are a series of problems in the course of development of China's agricultural listed companies,especially non-agricultural phenomenon is outstanding and very serious.Many agricultural listed companies choose to enter more than one industry to development,such as finance and real estate,but the limitation of their natural resource endowments make it difficult to achieve the expected results,and even to weaken the competitive power of the core business and cause damage to the performance of campanies.Even some agricultural listed companies completely abandoned the agricultural business through the reorganization of assets,changing their character of agriculture industry and becoming non-agricultural listed companies,which has adverse effect to China's agricultural development.In order to explore this problem in depth,this paper starts from the perspective of low performance of agricultural listed companies,which may be the reason of non-agricultural strategy,and further studies the influence of government subsidy that the agricultural listed companies have acquired on non-agricultural strategy,and its the function mechanism.On this basis,we will give some suggestions to management such phenomenon.This paper first introduces the background,present situation and trend of the non-agricultural business,and the government subsidy enjoyed by agricultural listed companies,and puts forward the research question.Secondly,through reviewing and combing the relevant literature,we will introduces the research achievements of non-agricultural strategy and government subsidy,which lays a theoretical foundation for the research of this paper.Finally,we uses statistical and econometric methods to analyze the unbalanced panel data of 39 agricultural listed companies in Shanghai and Shenzhen A-share market from 2003 to 2014 to explore the correlation among corporate performance,government subsidies and non-agricultural strategy,and then discuss the results.The main conclusions of this paper are as follows:(1)the lower the performance,the more inclined to agricultural non-agricultural listed companies,to improve the performance of the company is an important cause of non-agricultural strategy;(2)tax incentives can reduce the degree of non-agriculture and guide the agricultural listed companies return to the agricultural industry,but government subsidies can not achieve such effect;(3)tax incentives can improve the performance of agricultural listed companies,while the effect of government subsidies on the performance of agricultural listed companies is not significant;(4)Corporate performance plays a part of intermediary role in the relationship between tax incentives and non-agricultural strategy.So,we suggest that government departments should explore ways to adjust the government subsidies,emphasizing market-oriented,while strengthening the supervision and management of subsidies;agricultural listed companies should actively use the government subsidy policy,regulate the use of subsidy funds,cultivate and develop core competence,and effectively improve the competitiveness of enterprises.