Study On The Influence Of Agricultural Capital Structure Of The Listing Corporation To Profitability

Agriculture is the foundation of the national economy, which ensure the stability of thecountry and take effect on promoting economic development. Agricultural listing Corporationas a representative of the advanced agricultural industry, is the carrier of agriculturalindustrialization. But all agricultural industry have low level of profitability when comparedto other listed companies, which are related to the capital structure of agricultural industry.That the capital structure theory: the company’s capital structure will affect the efficiency ofcorporate governance, and then influence the company profitability. In recent years, in orderto promote the rapid development of agricultural industry, the government issued a series ofpreferential measures,which are continue to increase efforts to support agricultural listingCorporation. The government subsidies through tax credits and other ways in order to adjuststructure of agriculture industry and vigorously help improve productivity. But still can notchange the unreasonable capital structure, high rate of asset-liability ratio and currentliabilities resulted in poor profitability of the status quo. With the adjustment of agriculturalindustrialization, the changes in the agricultural capital structure of the listing Corporationand improve their profitability growing which is more and more concerned.On the basis of the agricultural listing Corporation capital structure, using empiricalanalysis in the form of research, trying to reveal the impact of capital structure of China’sagricultural listing Corporation to profitability, and putting forward reasonable suggestions.firstly,the author mainly introduce the research background, significance，the researchframework and ideas，the existing literature which to find the starting; secondly, defining thebasic concepts and theories related with is related with articlethe capital structure andprofitability; thirdly, introducing the characteristics of China’s agricultural listing Corporation,To compare listed companies which removing agricultural listed companies. Pointing out theexisting problems of low profitability and unreasonable capital structure.; fourthly, in thedefinition of agricultural listing Corporation, the author have selected agricultural companieslisted on the A-Share market of Shenzhen and Shanghai Stock Exchange in2008—2012assamples, at the same time eliminating A and B shares of listed companies, ST,*ST and theincomplete data sample, getting44effective samples. Finally, using empirical methods of factor analysis and stepwise regression to test the impact of China’s agricultural listingCorporation on profitability.The research results show that:(1) China’s agricultural listing Corporation assetsliabilities ratio and current debt ratio is higher than average A shares of listing Corporationlevel that of no agricultural listing Corporations;(2) In our country agricultural listingCorporation, higher asset liability ratio profitability is weak and the flow ratio of debt ishigher profitability is weak;(3) The share of Chinese agricultural listing Corporation focusedon profitability significantly, the enhancement of government subsidies to improve theprofitability of the company significantly;(4) The government subsidies on agricultural listingCorporation profitability significantly, the enhancement of government subsidies to improvethe profitability of the company. Based on the conclusion of the study, put forward theoptimization of agricultural capital structure of the listing Corporation, to improve theownership structure and improve the efficiency of government subsidy policyrecommendations. The innovation of this paper: firstly,when studying on the effect of capitalstructure of Chinese agricultural listing Corporation to profitability, considering agriculturallisting Corporation receive the policy support extensively, the government subsidy as thecontrol variable for research into the model; secondly, Using the factor analysis method toassess agricultural listing Corporation comprehensive index of profitability to reflectprofitability.