Studies On Operating Performance Of Agricultural Listed Companies From The Corporate Governance Angle

Agriculture is the foundation of the national economy, effecting the healthy developmentof our national economy. How to ensure the effective development of agriculture is always theimportant part of the national economic and social development. Although after the reformand opening,the implementation of Family-based Contracted Responsibility System transferthe majority of the farmers’ enthusiasm for production, promote the rapid development ofChina’s agriculture, at the same time, Agricultural Industrialization Achieve effective upgradeof agricultural industrial structure, and the sustainable development of China’s agriculturaluseful exploration, but the constraints of Agricultural Industrialization Development is ashortage of funds, while Periodic problems still persist. Agricultural listed companies is acorporate organization which introduces the modern enterprise system to agriculturaldevelopment, adapting to the modern enterprise in the history of agricultural development forthe first time, providing direct financing channels for agricultural enterprises. The form ofbusiness organization can take full advantage of the capital market to solve the shortage offunds in agricultural development, enhance the level of Agricultural IndustrializationDevelopment and the international competitiveness of China’s agricultural, speeding up theprocess of agricultural modernization in China. However, the basis of the management andcompetitive advantage of agricultural listed companies is still relatively weak, restricted theeffective development of agricultural listed companies. The root of these problems lies inagriculture listed corporate governance system defects. Corporate governance is the core ofthe modern enterprise system running, and has an important role in promoting thedevelopment of the company’s operating. In the course of it, the Board supervise themanagement process, structure and linkages, affect the company’s performance by Acting onCompany management. Corporate governance is the basic institutional guarantee for thecompany’s performance. Therefore, it is very important to study on the corporate governanceof agricultural listed companies and its impact on improving corporate performance inachieving business performance.This study analyses the current situation of the agricultural governance and the operatingperformance of agricultural listed companies, the actual impact on the operating performancefrom corporate governance performance, based on the industry characteristics of agricultural listed companies. From the analysis of Empirical results, bring out several key points toimprove the internal governance mechanisms of agricultural listed companies: theestablishing a moderate and effective incentives mechanisms, Innovativing oversight mechanisms,sounding functions of the Supervisory Committee, improving decision-making mechanism forthe core of the decision-making power, and bringing up the ecological control measures ofcorporate governance. In this study, some methods are used. First is the combination ofqualitative analysis and quantitative analysis. Through using Entropy Method and statisticalregression analysis method, it study the operating performance of the agricultural listedcompanies as well as the effect of corporate governance acting on its operating performance;Second is the combination of normative analysis and empirical analysis, analyzing ofcorporate governance theory and the current situation of empirical analysis, defining Conceptof agricultural listed companies, corporate governance, corporate performance, ecologicalenvironment and ecological environment control of agriculture Listed Companies; Third is theuse of the theory with the actual method. It uses relative indicators, based on analyzing themechanism of corporate governance acting on corporate performance, empirical analyzingand evaluating the affection on Operating Performance from corporate governance of listedagricultural companies.In this study, some conclusions and perspectives are proposed. First, the effect ofcorporate governance acting on corporate performance is influenced by industry. Combinedwith the agricultural industry characteristics listed companies, internal control mechanismsand ecological control mechanism of corporate governance are the internal and externalfactors which improve the corporate governance level of agricultural listed company. Secondis that Corporate governance has an important impact on agricultural listed companiesoperating performance, but the degree of influence from different levels of governanceindicators is not the same at all. At the same time, the results of empirical analysis issignificant different. It reflects the weak and defective of governance practice in agriculturallisted companies, bringing out the governance framework and key elements which adapt tothe development of China’s agricultural listed companies. Third is that Consolidated operatingperformance indicators is more conducive to reflect the impact of corporate governance on theperformance of listed agricultural companies. It analyzes the comprehensive operatingperformance of agricultural listed companies by entropy method, and studies the relationshipbetween agricultural listed company governance indicators and its operating performance,overcoming the defects of the single financial indicators of the operating performance,revealing the reason and proposing a solution. The forth is that the view of “Ecologicalcontrol” is put forward in corporate governance of agricultural listed companies. Ecology and its control of corporate governance provide support for the governance of agricultural listedcompanies, playing a fundamental conditions and the role of promoting the operatingperformance of the agricultural listed companies. For listed companies of different industries,ecological control will vary. The good ecology is the support of the corporate governanceefficiency, has an important strategic significance for the sustained and prudent developmentof agricultural listed companies.