The Empirical Study On Profitability Of China’S Agricultural Listed Companies And Its Influencing Factors

At the beginning of2010, government promulgated the profile about enlarge the strength of uniting cities and rural area, and enhance the development of agriculture and rural area. In the past six years, government already promulgated six guiding profile about the issues concerning agriculture, countryside and farmers. And we can see that the government regards the development of agriculture and countryside as the important foundation and work of the economic development.From the development of agriculture and rural economic point of view, agricultural listed companies play an important role in promoting China’s agricultural market and the upgrading of agricultural industrialization. Currently, agricultural listed companies in China represents the most advanced level of agricultural productivity, however, because of various reasons, agricultural listed companies have not played the leading role in the anticipation of agriculture, agricultural markets and the industrialization of agriculture, economic development. It’s mainly due to China’s agricultural listed companies are at a low level of profitability overall. Therefore, in the absence of effective profitability of agricultural listed companies, the agriculture and promotion of the rural economy will be subject to serious constraints.To this end, the research and analysis was applied on those factors which affecting the profitability of China’s agricultural listed companies, including the price of agricultural products, the fiscal and taxation subsidies, the employ of independent directors and stockholder’s rights concentration degree and so on. The empirical tests were performed base on empirical evidence of agricultural listed companies. According to the hypothesis analysis and test, several conclusions were approached; the price of agricultural products, the fiscal and taxation subsidies, the employ of independent directors and stockholder’s rights concentration degree of listed companies are positively related to the profitability. For the significance, all the explanations are remarkable except the corporate governance, and the hypothesis were proved.The innovation in the thesis is mainly reflected on the synthesizing of internal and external factors affect agricultural listed companies. In this study, the profitability was not only analyzed from the perspective of accounting, but prone to internal and external perspective, especially the prices of agricultural products. It is a good supplement to the study of relevant theory and domestic policies research.