The Research On Financing Structure And Operating Performance For Agriculture Listed Companies

The financing structure includes the rights and obligations of the company`s capitalinvestors. The source of capital decides the application of companies`funds, impact on thecorporation governance model. Finally, It decides the company initial values. Theagriculture listed companies are very concerned in China`s capital market. In terms of totalassets and the number of equity capitals. Its shares are less than5%. But the agriculture listedcompanies are the typical advanced productive forces of current agriculture in China. Theywill promote the intensification of agriculture enterprises in transition, conduct the wholeagriculture companies upgrade. In terms of the characteristics of current agriculture listedcompanies in shanghai and Shenzhen A stock market. Although all the companies havedifferent asset size and run unsimilarly, they all prefer equity financing and partial short-termdebt financing. They don`t attach great attention to the accumulation of endogenous financingand don`t take full advantage of the commercial credit financing. The unreasonablefinancing structure is bound to have a negative effect on the operation of companies and theuse of companies`fund. Therefore，The paper develops financing structure as starting point.Then, I use factor analysis method and panel data model to explore the relationship amongthe financial indicators. Analysing the question of hindering to enhancing companies`operating performance from financing choice angles. At last, I propose measures toagriculture listed companies for their future directions and growth.First, I refine previous references,elaborate the classic financing structure theory and themodern financing structure theory. I put forward a detailed analysis of the constraints offinancing structure to companies`operating performance.Secondly, Using Excel statistical software to organize financial data. Analysing the statusproblem of agriculture listed companies financing structure. I find that the agriculture listedcompanies prefer debt financing and have high proportion of short-term debt、the lowproportion of long-term debt and endogenous capital. The overall financing structure isirrational.The financial leverage does not play a role in such phenomena.Then, The paper take30agriculture listed companies as the analysis of objects in2002-2011.Selecting the earning data, Collating financing indicators, Using factor analysis ofthe operating performance of the companies over the past decade.Finally, This paper analyses the empirical findings reasonably. Putting forward measures involved in the internal structure of their own funds. Improving the economic andlegal environment to enhancing the business performance of the agriculture listed companiesin the current circumstance. The measures include how to determine a reasonable proportionof debt financing; how to make full use of financial leverage to improve the companies`operating results; how to accelerate the reform of the capital market; how to enable biz tomore bond financing and derivatives financing.At the same time, The agriculture listedcompanies should open up a wide range of financing channels；Taking full advantage ofshort-term financing of commercial credit; Focusing on the development of main biz andoppose blind expansion; Improving the incentive mechanism to reduce agency costs;Establishing a favorable legal environment and ensure the effective implement of theBankrupt Act to urge agriculture enterprises into improving business performance. All are sixrecommendations.