Research On The Valuation And Value Creation Of Listed Agricultural Companies In China

The establishment and development of listed agricultural companies are of great significance to the agricultural structure adjustment and the industrial management of agriculture, the improvement of the quality of produces and marketing profits, the enhancement of the international competence of agriculture and the acceleration of agricultural modernization in China. But in recent years, with the development of the listed agricultural companies in China, many problems present themselves which severely affect the market competence and sustainable development of these companies, such as misses in multi-management, the main businesses recession, the decline of company performance, bad marketing and so on. From the perspective of industrial economics, is the decline of performance of these companies caused by the weaknesses of agriculture itself, or do the Value Creation capacity and methods of these companies need promoting, or does the government policy of mass investment and favorable measures need necessary adjustment? How to promote the operation of agricultural industry? How to improve the quality of produces as well as the profits of agriculture? These issues obviously play an important role in improving the adjustment of agricultural, the proper configuration of government financial investment in agriculture, the effective coordination of agricultural policies and the acceleration of agricultural modernization. The capital making capacity reflects the development of a listed agricultural company, objectively observes its performance, analyses in depth the real factors of the performance, and looks for strategies to enhance capital making capacity, which are of great theoretical and practical significance. This paper is laid out on such basis.The contents of this research are indicator value assessment (IVA) and economic value added (EVA) aimed at value management, with Value Creation capacity of listed agricultural companies as its basic start point and main research object. It applies indicator value assessment (IVA) theory, performance evaluation theory, modern enterprise theory, agricultural industrialization theory, and relevant knowledge of comprehensive agricultural economics, company financials, finances and so on, and by the methods of regular analyses and empirical analyses, systematically analyzes the capital making capacity of listed agricultural companies. The main observing root of this research is assessing the Value Creation capacity of these companies by EVA, objectively evaluating the performance and affecting factors by factors analysis, anatomizing these factors by factor analysis, regression analysis, correlation analysis, financial analysis and so on, elaborating the changing characteristics and essential causes of the EVA Value Creation capacity of these companies, and based on these results, exploring strategies for promoting their Value Creation capacity. On this basis, corresponding policies and advices are presented. This research is divided as following parts:The first part puts forward the objective and significance of this research, defines important conceptions, establishes the objective, methods, content, structure, and innovation, as well as research limits of this paper, makes a review of relevant literatures, introduces the development outlook, apprises the thinking basis of value assessment theory, and discusses problems such as agricultural industrialization and capital market compatibility and so on.The second part is the comparative Study of enterprises value assessment. It separately compares the two internal value theories of enterprises, the present value of earnings and the market value of enterprises, elaborating the enterprises value assessment theory. This paper discusses the activities and motivations of enterprises Value Creation, separately analyses and compares the enterprises value assessment theory, the objective, the hypothesis, and the value computation models of different enterprises and the basic requirements and limits of assessing methods. Theoretical research demonstrates that the essence of value management is based the capital flow management of Value Creation, and that the core of value management is value assessment and Value Creation. So this research sets aside enough spaces to explore enterprises value assessment methods and models by methodology, introduces optimized theory model-EVA in order to regularize the research requirements of theory and methodology, and supply theoretical analysis frames for empirical research.The third part composes application model:EVA value assessment. Starting from the economical signification and Value Creation conception, this part deduces and modifies the EVA theory, and analyzes the application of EVA value assessment system in enterprises value management from the two aspects of stable characteristics and quantity. On this basis, It composes the models and methods of EVA enterprises performance assessment, correctly calculates the key variable of EVA index, and analyzes the compatibility of such index in China's capital market.The fourth part is the empirical analysis of listed agricultural companies. By selecting proper examples and based on the annual reports of these companies, it applies EVA computation model to assess the Value Creation capacity of these companies, calculates all kinds of economic added values of these companies, quantitative assesses the performance and capital making capacity of these companies, analyzes the affecting factors of the EVA index of corresponding companies, and explores the essential causes of the influences on the Value Creation capacity of these companies. The empirical analyses of this paper demonstrate that EVA index can overcome the disadvantages of traditional performance assessment index, and observes the Value Creation capacity of enterprises more objectively and effectively.The fifth part is the research on the Value Creation of listed agricultural companies. By the methods of factor analysis and regression analysis, it elaborates the changing characteristics and causes of capital making capacity of these companies. Firstly, it establishes the assessment index required by factor analysis, selects the common factors of such assessment by the method of factor analysis, describes and factor-analyzes the performance of same example companies, explains the influence of the relevant factors on capacities; and then empirically demonstrates the pertinence of the common factors and the EVA index by regression analysis, and explores the strategies to promote the capacity.The sixth part sums up the main conclusion of this paper and presents corresponding advices. The empirical result of this paper shows that the Value Creation capacity of listed agricultural companies in China is comparatively low, and so as the through performance. The key factors that deciding the capacity are the profit-making ability, capital costs and development characteristics. The importance of the Value Creation capacity of listed agricultural companies should be fully understood. The supporting policies of the government should be directed by the market, properly configuring financial resources and perfecting the financial structures of these companies. EVA has higher explaining ability of Value Creation capacity than traditional accounting index. To facilitate the long-term development of the securities business in China and form the micro-basis for healthy development, the introduction of EVA Value Creation theory to execute enterprises value management is necessary.