Integration Of Industry-finance’ Effect On Financing Ability Of Agricultural Listed Companies

Both the optimization of the industrial chain of agriculture and modernization development need a large quantity of financial capital to support.Integration of industry and finance, a new way of financing for agricultural enterprises,can enhance the capability of financing. To explore the effect of integration of industry and finance on financing ability of Agricultural listed companies is significant to the financing of agricultural enterprises and easing the funding gap.At first, this paper redefines integration of industry and finance after the retrospective study on it. Then it studies the effect of integration of industry and finance by investment in financial institutions and non-financial institutions on financing ability. In addition, from financing amount, external dependence of financing, financing structure and financing cost, this paper build the evaluation index system of financing ability. At last, it carry out empirical analysis of agricultural listed companies by using the correlation analysis.The study shows that there exist the phenomenon of integration of industry and finance in agricultural listed companies.In terms of the investment in financial institutions,the investment objects include the bank, credit union, securities companies, insurance companies and other financial institutions.Meanwhile banks and credit unions, investment company are the most widely used way.In terms of the investment in the non-financial institutions,related party transactions and guaranteed loans are widely applied.The financing effect of agricultural listed companies involves financing amount, external dependence of financing, financing structure and financing cost.First of all, the financing amount and external financing dependence index of correlation with the equity investment is more significant.Integration of industry and finance plays a significant role in enhancing the financing ability of agricultural listed companies and reducing the dependence of external funds.Secondly, the related degree between financing structure and equity investment is relatively weak and integration of industry and finance makes more impacts on short-term financing strategy.In addition, it also improve the ratio of debt financing and increase financial expenses of agricultural listed companies.