Research On Value Creation Ability Of Agricultural Listed Company In China

The sustainable development of agricultural listed companies is closely related to its value creation ability. The value creation ability can effectively reflect the development status of agricultural listed companies, which can objectively evaluate the business performance of the companies. The value creation ability is affected by the internal and external factors. In order to promote the rapid development of agricultural listed Companies, China made a series of agricultural tax preferential policies. Do these policies have a positive impact on promoting value creation ability of agricultural listed companies, and do these policies need necessary adjustment in the new situation? Is China’s current agricultural industry environment conducive to the development of agricultural industrialization, or can these policies promote its healthy growth and conducive its value creation ability? Can diversification strategy of agricultural listed Companies promote its value creating ability? Has the strategy reached the expected target? Do the governance structure, profitability, asset growth and turnover rate, assets scale have an impact on value creation ability? These problems are the starting point of this paper. Though analyzing the influencing factors of value creation ability of agricultural listed companies, this paper try to find out its corresponding measures, and to promote the development of agricultural listed companies in a sustainable, rapid and sound manner. So this paper has the important theory significance and practical significance.Taking value creation ability of china’s agricultural listed companies as the research object and using empirical and normative analysis methods, this paper systematically analyze the level of agricultural listed companies value creation ability and influencing factors with enterprise strategic theory, corporate value evaluation theory, company governance theory, agricultural industrialization theory, modern company finance theory and other related theory. For example, this paper studies the present situation of agriculture environment by using the method of factor analysis, and evaluates the models of value assessment by using comparative analysis method.Besides, by using multiple regression and stepwise regression, this paper makes an empirical study on the internal and external influencing factors on the value creation ability of china’s agricultural listed companies. The empirical results show that, income tax incentives, financial subsidies, return on invested capital, the proportion of the first shareholders, the proportion of independent directors, the growth rate of business income, total assets turnover ability is positively related to value creation, management shareholding, the main business income of square, asset liability ratio, net interest rate, total assets total assets is negatively related to value creation ability. Among them, income tax incentives, financial subsidies, preferential income tax return on invested capital, the proportion of the first shareholders, the growth rate of business income, total assets turnover, total assets have significant influences.And the proportion of independent directors, the proportion of management shareholding, the main business income of square and, net interest rate of total assets, asset liability ratio at the5%level have not significantly affection, but the existence of incremental information, can improve the fit of the models.Based on the above empirical results, the paper argues that, in order to improve agricultural listed companies value creation ability, the government should take some measures as follows: Firstly, set EVA appraisal system to the agricultural listed companies which receive the subsidies and other preferential policies. Secondly, change the subsidy modes and tilt to the agricultural listed companies with strong value creation ability and good driven effect. Secondly, change the role of government actively, play the invisible hand role in the market mechanism, improve agricultural environment to provide good development space for the agricultural listed companies.The agricultural listed companies may adopt moderate diversified operation when they enlarge and strengthen its core business. To make sure management and the enterprise have a same goal, agricultural listed companies should improve corporate governance, enhance ownership concentration, raise the proportion of independent directors, and control well the shareholding ratio of management. Control the debt ratio, reduce financial risk of enterprises; improve the profitability of the companies but also to focus on the main business revenue growth and asset turnover rate; control the companies scale, not the blind pursuit of the size of the companies’ growth, but more attention should be paid to strengthen core businesses, to maintain the sustainable development of the companies.