Research On The Impact Of Financial Governance On Performance Of Farmers’ Professional Cooperatives

In the new era,against the backdrop of the implementation of the rural rejuvenation strategy,farmers’ professional cooperatives,as an organic link between promoting smallholder production and modern agricultural development,play an important role in driving rural economic development,promoting agricultural industrialization and maintaining the stability of rural social order,and their healthy and sustainable development is of great significance to rural rejuvenation.Financial governance is at the core of the management of professional farmers’ cooperatives,and the state of financial governance is the key to organizational efficiency and a necessary support for the long-term stable operation of cooperatives.However,as the number of farmers’ professional cooperatives grows steadily and their organizational forms become more and more diverse,the problems of unreasonable financial decisionmaking,imperfect financial incentives and inadequate financial constraints in their internal financial governance are becoming increasingly prominent and are gradually becoming important limiting factors affecting the performance and healthy and sustainable development of farmers’ professional cooperatives.Therefore,actively exploring the establishment of a scientific and effective financial governance mechanism for cooperatives and promoting their performance is not only a practical need to achieve "prosperous industries",but also a practical need for "effective governance".This paper uses transaction cost theory,principal-agent theory,stakeholder theory and financial governance theory as the basis for research,and as such,clarifies the connotation and specificity of farmers’ professional cooperatives and defines the concepts of financial governance and performance of farmers’ professional cooperatives.Based on the analysis of practical survey data,descriptive statistics are used to summaries the characteristics and problems of financial governance of farmers’ professional co-operatives in TC Township,Pidu District.The factor analysis method is used to construct the performance evaluation system of farmers’ professional cooperatives from four dimensions,including economic benefits,operational benefits,development benefits and social benefits,to make a scientific and reasonable evaluation of the overall performance of farmers’ professional cooperatives.On this basis,a system of financial governance connotation indicators for farmers’ professional cooperatives is constructed from three dimensions,including financial decision-making,financial incentives and financial constraints,and a logistic binary regression model is used to explore the impact of financial governance on the performance of farmers’ professional cooperatives,highlight the importance of financial governance and analyses the key influencing factors.The results of the study show that the financial governance of farmers’ professional cooperatives has a positive and significant impact on performance.The main influencing factors include the following: the form of voting in the general meeting of members(representatives),the degree of participation of members in major financial decisions,the degree of financial disclosure,the degree of improvement of the financial system of farmers’ professional cooperatives,and the target of financial incentives.Therefore,the internal financial governance mechanism of farmers’ professional cooperatives should be optimized to promote the overall performance of cooperatives.Based on the results of the study,this paper proposes suggestions for optimization in terms of strengthening the internal financial governance mechanism of farmers’ professional cooperatives and increasing government support and supervision,so as to protect the democratic rights and economic interests of members,promote the improvement of operational efficiency and healthy and sustainable development of farmers’ professional cooperatives,and provide the necessary support to further drive the continuous growth of rural industries and economy and achieve rural renewal.