Study On Capacity For Sustainable Financing Of China's Agriculture Listed Companies

This thesis studies the problem of the sustainable financing capacity of China's agriculture listed companies. Capacity for sustainable financing is one of the important parts of the core competitive capacity of agriculture listed firms. Based on the corporate financing theory and governance theory, established in strategic goal of enterprise sustainable development, this paper study the meaning of sustainable financing capacity firstly. And then, as for the evaluation of sustainable financing capacity of agriculture listed firms, a system with five indexes is built up. In accordance with the system, the author makes a comprehensive evaluation and finds that the capacity for sustainable financing of agriculture listed firms in China is on the weak side in general. After this, the causes which resulted in the weakness of sustainable capacity and negative effects it brought are studied. Finally, on the basis of the present situation, some measures are suggested. The main conclusions and policies are as follows:①Conclusions1) In general, most of agriculture listed companies'operation in China is dissatisfactory. Most key financial indexes appear to decline. These companies lack competitive capability due to relatively inefficient management. Agriculture listed companies with low internal financing and rely on external financing excessively, so they don't have strong capabilities to raise capital by themselves. Their future development won't be promising. Therefore, with unstable basis, it's difficult to realize agriculture listed companies'sustainable financing.2) There are improper financing concepts among agriculture listed companies in China and no concepts of sustainable financing. On this financing viewpoint, the financing structure of the listed companies is unreasonable. The financing channel of listed companies is limited and the efficiency of financing is lower. This is disadvantageous to the sustainable financing of agriculture listed companies.3) The corporation governance system of agriculture listed companies is deficient. Equity structure is illogical. Most of agriculture listed companies'stocks are state-held shares, which leads to failure of mechanism of balance. Corporate governance structure is extremely defective."Insiders control"is very serious in agriculture listed companies. Minority shareholders'right and interest can't be effectively protected. Investors'trust is weakened by low management level of listed companies, which indirectly affects agriculture listed companies'capacity for financing.4) The development of our capital market is immaturity, and not only can't meet the demands of the development of bond market, but also restrain the financing capacity of the agriculture listed companies. Concerning stock market, there appear some problems: capital market is single; channels for listed companies financing are limited; supervision mechanism isn't integrated; laws developed in China are defective and investors'enthusiasm for investment is dampened. With regard to financial credit market, there is a conflict between increase need for capital in rural market and insufficient loans support for rural development. These exterior conditions become important factors that limit agriculture listed companies'capacity for financing.②Suggestions1) Enhancing agriculture listed companies'competitive capabilities. First, companies'operating scale should be extended and then scale economy should be realized. Second, main business will be developed and operation efficiency of capital should be improved. Third, science and techniques input should be strengthened and agriculture products can be added more values.2) Its necessary for agriculture listed companies in China to change financing concepts and establish proper concepts of sustainable financing. On the one hand, agriculture listed companies should adjust the financing structure intentional; establish a financing system with more financing channel and low financing cost. On the other hand, capital utilization should be optimized, financing innovation should be focused on and financing plans should be strengthened.3) Perfecting modern corporation system of agriculture listed companies, optimizing their equity structure and corporation governance system, building a well system foundation for sustainable financing of corporations.4) Promoting the structural adjustment of capital market, building a multi-arranged capital market system, adapting the various financing demands of corporations and diverse investing demands of investors. Furthermore, our government should establish benefit policies to sustain the development of agriculture finance institutions to ensure agriculture development.