An Empirical Study Of The Impact Of Financial And Tax Subsidieson The Agricultural Listed Company Performance

As the foundation of the national economy, agriculture plays an irreplaceable role in the economic operation system, agricultural listed company is the leading enterprise of agricultural industry. Since China’s reform and opening up, the central has been focusing on consolidating and developing the fundamental position of agriculture, and spend a lot of money on financial and tax subsidies for agriculture and its related industries each year, however, the performance of agricultural listed company has been worrying. Since 2004, the central has been issuing central files on agriculture for 11 consecutive years, whether various preferential policies adopted by the government especially financial and tax subsidies achieve the desired objective and promote the development of agricultural listed company fundamentally or not is worthy of our study.Based on the characteristics of agricultural listed company, this paper selects the impact of financial and tax subsidies on agricultural listed company performance as the research object, after a comprehensive analysis of China’s current fiscal and taxation preferential policy and its mechanism, selects ROE as the measure of agricultural listed company performance, then using the regression analysis to study the impact of financial and tax subsidies on agricultural listed company performance, finding out problems of the fiscal and taxation preferential policy in the process of implementation, and helping to make financial and tax subsidies’ policy which is in favor of the long-term development of agricultural listed company.Through the empirical analysis, this paper draws the following conclusion: tax preferential and income subsidies are positive correlation with agricultural listed company performance, district, property attributes and equity concentration have a significantly influence on agricultural listed company performance, and company age is not related with the performance. The fiscal and taxation preferential policy has improved agricultural listed company performance to a certain extent, but is unfavorable to the promotion of long-term competitiveness of agricultural listed company. The government should change the method of single direct support, but adopt more indirect ways, putting agricultural listed company to the market and promoting its initiative to enhance its core competitiveness, and then promoting the development of agriculture and national economy in a healthy way.