Study On The Relationship Between The Financial Governance Structure And The Operating Performance Of Agricultural Listing Corporations

Problems related to agriculture, rural areas and farmers have been the national priority and needed urgent solutions since China’s reform and opening up. They are also the research emphasis and focus of theoretical and academic circle. However, the operating performance of the agriculture listing corporations is not ideal in our country. Whether the financial governance structure is reasonable or not is one of the important factors influencing the operating performance of the companies. This paper focuses on the financial governance structure and operating performance of agricultural listing corporations.In this paper, with the theory of corporate governance, financial stratification theory, contingency management theory and performance appraisal theory as a guide, the author first analyses the relationship between the corporate financial governance structure and the operating performance, and then puts forward the subject of financial governance structure. On the basis of the above, the author builds the index system of the financial governance structure and the operating performance of agricultural listing corporations, which lays a strong foundation for the empirical study.In the empirical aspect, the author first uses factor analysis method to extract five mutually independent factors from the fourteen financial indexes measuring the business performance of agricultural listing corporations. Based on the above, she comes out with the comprehensive performance value F of agricultural listing corporations. And then, the author presents a simple analysis of the relationship between the nine indicators of the governance structure and the comprehensive performance value F of agricultural listing corporations by using the descriptive analysis method. Next, consider revising the empirical research in depth using the method of multiple regression analysis. The research results show a weak positive correlation between the business performance of agriculture listing corporations and the shareholding ratio of the top5shareholders and top executives, the salary of the executives, the size of the board of directors and supervisors, and the proportion of independent directors, while Z value, the proportion of tradable shares and independent directors are negatively correlated with the business performance. Finally the author puts forward some effective countermeasures and suggestions of financial governance structure from four aspects:optimizing the equity structure, perfecting the board system, establishing an effective corporate incentive and constraint mechanism and improving the external environment of listing corporation governance structure.