A Study Of Impacts On Agricultural Listed Corporations’ Refinancing For Operational Performance

When it comes to the research on the refinancing of the listed agricultural companies,the degree of concern is obviously less than that of the general listed companies except mentioned above.However,as the backbone among industries of the national economy,the listed agricultural companies are the most economically dynamic part of the agricultural economic sector,and their operating performance should be concerned by various social force including the government.However,due to the vulnerability of the agricultural industry itself,the listed agricultural companies are located in the middle part of the smile curve,undertaking the prenatal part of the economic more,and the long-term poor and weak operating performance is serious.Even the main business of the listed agricultural companies has been transformed to cope with the sustained decline in operational performance with the diversified development strategy.How to improve the poor operational performance of the listed agricultural companies for a long time and provide a feasible path for operational performance improvement from the perspective of refinancing.According to "industry classification guidance of listed companies" released in 2001 by the China Securities Regulatory Commission,from the CSMAR database there are 45 listed companies as total after selection meeting standard belong to the category of agriculture,forestry,husbandry and fishing,eliminating losses even suspended listed agricultural companies total as 12,choosing 2007-2017 which after the non-tradable shares reform as sample data observed term.From three kinds of model or mixed model and fixed effect model and random effects model applying panel data,through LM test and hausman test,finally fixed effects regression model is chosen as the sample data research method.The type of refinancing is redefined according to the source of refinance,with debt refinancing,equity refinancing and government subsidy as the external refinancing,and surplus reserved and undistributed profit as the retained earnings.Following research conclusions come to us through statistical analysis: debt refinancing accounted for more than fifty percent of the total amount of refinancing for a long time,with the passing of time,the ability of self-accumulation to refinance is rising,so,the proportion of retained earnings is rising,but the debt refinancing has always been the primary choice of the listed agricultural companies refinancing till now.This also confirms that previous studies on Chinese financing order and pecking order theory are inconsistent,and debt refinancing has a significant negative impact on the operational performance of the listed agricultural companies.Equity refinancing has a positive impact on the performance of the listed agricultural companies,but it is not significant.Government subsidy plays a positive role in the operational performance improvement of the listed agricultural companies.However,both surplus reserved and undistributed profits negatively affect the operational performance of the listed agricultural companies,while the impact of undistributed profits is not significant.The property nature also has a negative impact on the operational performance of the listed agricultural companies.Comparing the state-owned sub-samples with the general and non-state-owned sub-samples,the expression of many observable variables is different.Judging from the overall situation of the domestic listed agricultural companies’ refinancing,the unreasonable financing order that prefers debt refinancing has not been changed,but the proportion of debt refinancing to total refinancing has declined.The external realization index has declined,either.And the ability of self-accumulation and refinancing has been strengthened constantly.Due to the link between remuneration and operational performance,the management prefers to external refinancing sources and improve the self-accumulation retention rate to whitewash operational performance.Therefore,the choice of moral risk brought by this problem needs to be solved urgently.Shareholders may abandon refinancing funds for project investment in order to prevent the transfer of control rights to debt creditors.To make self-accumulation refinancing exert influence to operational performance according to theory,the listed agricultural companies should cut down the retained earnings ratio,raise equity refinancing ratio,increase government subsidies for non-state-owned companies,implement active dividend policy to stimulate business vitality,attract external refinancing to strengthen management oversight,and improve the disclosure quality of refinancing information.A report only based on refinancing funds using should be formed.