Empirical Study Of The Effect On Enterprise Growth Of Seed Industry Listed Companies

Food security that is a major strategic issue has always related to economic development, social stability and national independent, but the healthy and stable development of the seed industry is connected to the source of food security.Foreign industry giants continue to enter the Chinese seed market after the “Seed Law” enacted in 2000. Recently, Chinese seed industry market is transforming from traditional seed industry to modern seed industry, and the survival and growth of Chinese seed industry listed companies are now subject to double challenges which are caused by the immaturity of Chinese seed industry market and the extrusion of foreign industry giants.So how healthy, sustainable growth of Chinese seed industry listed companies are very important. Therefore, the article need to think about the following questions: First, how to measure the growth of the seed industry listed companies?Second, which factors will effect the growth of seed industry listed companies?Third, how these factors impact on the growth of seed industry listed companies?Fourth, how the seed industry listed company can grow better?On the issues, the article selects twelve kinds Chinese and foreign seed industry listed companies as research subject, selects the growth rate of net assets and the growth rate of sales as the dependent variable and selects initial investment in fixed asset value, initial investment cash and cash equivalents, current liabilities ratio, the proportion of seed business, the proportion of seed business, R&D investment accounted for the proportion of sales revenue, net profit margin on sales, country of seed industry listed corporations as independent variable. The article estimates the model of net asset growth rate and sales growth rate that use multiple linear regression and binary choice logit model.The empirical results show the main factors which effect the growth of seed industry companies include the beginning of monetary investment funds, currentliabilities ratio, the proportion of seed business, R&D expenditure and sales profit rate.The article presents the following recommendations: the seed industry listed companies should be cautious about production resources input in the aspect of investment resources, increasing capital investment of resources; the seed industry listed companies should increase investment in research to promote variety innovation, and optimize seed product structure in asset allocation; the seed industry listed companies enhance the profitability of the sales process through optimizing marketing strategies in terms of profitability.