Study On Performance Of The Agricultural Listed Companies Based On Financial Behavior

The survival and development of the agricultural listed companies in the stock market is worth paying attention. Under the background of fact that the development is improving gradually, how is actually the performent of the agricultural listed companies? Is it whether reasonable that the financial behavior such as capital structure decision,diversification and cash holding? What influences do these financial behavior affect company achievements? This paper attempts to discuss these problems through empirical analysis. Choosing 17 agricultural listed companies in Shanghai Stock Exchange and Shenzhen Stock Exchange as researching object, using 2004-2006 year financial report's data. This article is composed of five chapters:The first part is introduction, including background and significance, domestic and international research current situation, arguments basis, the research of content and technique, innovation.Chapter two, which is the theoretical basis of empiricalo study, defines the agricultural listed company and its performance and financial behavior at first, elaborates the sample companies of this research, analyzes how the financial behavior of the agricultural listed company affect its performance based on some correlation theories.The third chapter, which using Factor Analysis to evaluate the performance of the agricultural listed companies, explains the selection mentality and principle of achievement appraisal system, and introduces evaluation method selected. Choosing the three years mean value of various financial index of sample companies during the 2004-2006 periods, using Factor Analysis to appraise average comprehensive performance in the three years, we can obtain achievement score of various sample companies. According to the conclusion, it indicates that there is significant difference among the performance of the agricultural listed companies.The fourth chapter is an empirical analysis on the relationship between financial behavior and corporate performance of the agricultural listed companies. Taking various sample companies's achievement score to measure their comprehensive performance, this paper analyzes initially the relationship between financial behavior and corporate performance through the descriptive statistics and the correlation analysis at first. Futhermore, setting up regression models to analyze the effect of financial behavior on firm performance. The results show that: the capital structure of listed agribusinesses has insignificant cubic relation with firm performance, debt ratio has a goal optimization sector, which may be 24.90%～58.90%; diversification has no significant influence on performance, however, analyzing only from the coefficient, diversification is weakly negatively correlated with performance; cash holding has significantly positive relation with performance.Finally, we put forward some methods to improve performance of the agricultural listed companies based on optimizing financial behavior. Through optimizing capital structure, choosing the investment decision-making that combining to develop main business deeply with moderate related diversification, and increasing the level of cash holding appropriately, the performance of the agricultural listed companies shoule be improved.