Corporate Governance Perspective Based Technical Efficiency Research For Listed Agriculture And Forestry Companies

The listed companies of agriculture and forestry are not only a complex oflisted companies and companies of agriculture and forestry, but also the combination offarmers with markets. The quality of companies is related to long-term development oftheir own and the issue of farmers’ income and rural stability. It is also related to thegrowth of domestic agriculture and forestry industry and the national economy. In theeconomic globalization days, the development of companies of agriculture and forestry andthe extension of themselves are becoming impressive increasingly.Using a combination of qualitative and quantitative methods, data and annual report,reported by companies of agriculture and forestry and Shanghai and Shenzhen stockexchanges between2008and2010, this paper analyzes the technical efficiency of18listedcompanies of agriculture and forestry and the impact of corporate governance factors ontechnical efficiency.Firstly, based on the summaries and analysis of indicators of the company’sinput-output and the corporate governance, this paper establishes the input-outputindicators, used to evaluate listed companies of agriculture and forestry, and indicators ofcorporate governance. Secondly, the paper establishes the translog stochastic frontierproduction function and calculates the technical efficiency of listed companies ofagriculture and forestry using stochastic frontier analysis, and then, studies the impact ofcorporate governance on technical efficiency. In order to offset the weakness of the SFA,the paper caculates the technical efficiency using data envelopment analysis and analyzesthe impact of corporate governance on technical efficiency based on the establishment ofregression model.On the basis of empirical analysis, the paper makes a comparative study with theresults of two methods from technical efficiency value perspective and impact of corporategovernance on technical efficiency perspective. Finally, the paper studies the impact oftechnical efficiency on total factor productivity of listed companies of agriculture andforestry with malmquist method, and makes a classified study with sample companies bycluster analysis method from corporate governance perspective. The paper shows that the average three years’ technical efficiency value of listedcompanies of agriculture and forestry, caculated by the stochastic frontier analysis, is lowerthan the value, caculated by the data envelopment analysis, because of the differences oftwo methods’ theory. The values are0.8109and0.9282respectively. Although there aresome differences between the two results, the results show that the technical efficiency oflisted companies of agriculture and forestry have some room for improvement. The resultalso shows that the technical efficiency of listed companies of forestry is lower than listedcompanies of agriculture. The impacting factors analysis research of technical efficiency oflisted companies of agriculture and forestry for corporate governance perspective showsthat four factors, whether state-owned holding company, the annual total remuneration ofthe management, board size and asset-liability ratio, have a negative effect on the technicalefficiency of listed companies of agriculture and forestry. From the perspective of totalfactors productivity change, the total factor productivity of listed companies of agricultureand forestry grows within3years. But, the impact of technical efficiency on the totalfactors productivity is less than the technical level advance.Finally, based on theoretical analysis and empirical test results, this paper givesadvices, improving the technical efficiency of listed companies of agriculture and forestry,from the perspective of stock equity governance, management governance, boardgovernance and capital structure, such as diminishing the rate of nationalized share andcirculating share, improving the wage structure of manager, diminishing the board ofdirectors scales and so on.