Research On Operating Efficiency And Its Influencing Factors Of China’s Pig Industry Listed Companies

China is the largest pork production and consumption country in the world, and pig industry has evolved from the early household sideline into a pillar industry closely related to national economy and people’s livelihood, playing as an important source of economic growth of animal husbandry in our country. But in recent years, feed shortage, rising labor costs and frequent disease, have resulted in an upsurge of integrated cost, which has become the bottleneck constraints of pig industry development. As the leading enterprise, pig industry listed companies can fully reflect the development level and overall competitiveness of a country’s pig industry. Under this background, it has very important theoretical and practical significance to study the operational efficiency and its influencing factors of the pig industry listed companies in order to improve their competitiveness and promote the sustainable and healthy development of pig industry.Firstly, this paper introduced the actual development of China’s pig industry, and analyzed China’s pig industry from the perspective of operating efficiency, combing with relevant research results at home and abroad. Then this paper imported the basic concept of efficiency, and introduced several methods of efficiency calculation, focusing on the Data Envelopment Analysis method(DEA) and Tobit model.Secondly, in the empirical analysis, taking China’s 16 pig industry listed companies during 2010-2014 as the research object, this paper constructed the non-parameter DEA model to estimate the overall efficiency, pure technical efficiency and scale efficiency of the 16 listed companies in each year, and used the Malmquist index model to decompose the corresponding efficiency values. Results showed that the overall operating efficiency of China’s pig industry listed companies is in a high level with a rising trend year by year during the sample period; Among the three types of listed companies, pig feed processing company’s operating efficiency is the highest, followed by slaughter and deep processing companies, and pig farming company’s operating efficiency is the worst; Last but not least, the Malmquist index of the pig industry listed companies presented a declining trend year by year, mainly due to the decline of the technology.Thirdly, this paper selected six indicators reflecting operation and management strategy of the listed companies as explanatory variables, the overall efficiency of China’s 16 pig industry listed companies as the explained variable, and analyzed the factors influencing the efficiency of China’s pig industry listed companies by the Tobit model. Results showed that human capital had significant negative effect on the company’s operating efficiency, while total assets turnover ratio, ownership concentration degree and R&D management level had significant positive effect on the company’s operating efficiency, and establishment period, company size, asset liability rate had no significant impact on the company’s operating efficiency.Finally, the article summarized the study results, and put forward the corresponding policy recommendations. This paper suggests that the pig enterprise should enrich the personnel training mechanism to improve the quality of employees; Encourage product export of pig enterprises to improve their market competitiveness; Optimize listed companies’ equity structure to stimulate the enthusiasm of major shareholders; Appropriatly increase R&D investment, and actively introduce advanced production technology, so as to enhance the overall operational efficiency and competitiveness of the pig industry listed companies.The innovation of this paper lies in the research object of pig industry listed companies, and the DEA method as well as Tobit model were applied to the analysis of enterprise’s operating efficiency, which further expand the research field of the management efficiency; moreover, an overall inspection of the dynamic changes of the pig industry listed companies’ operating efficiency was conducted, meanwhile, comparatively analyzed the operating efficiency differences between pig farming listed companies, pig feed processing companies, slaughter and processing companies. Furthermore, this paper considered the effect of establishment period, company size, human capital, total assets turnover ratio, equity concentration, asset liability rate, and R&D management level on operating efficiency of listed companies, this kind of research has important significance on the development and competitive advantage of China’s pig industry.