An Empirical Research On The Difference In Profit Rates Of China’s Agricultural Listed Companies And The Affecting Factors

Want to achieve agricultural modernization and internationalization, need to play the agricultural listed companies important role in the agricultural marketization process and upgrading of industrial structure. However, as the representatives of advanced productivity of agriculture in our country, the development of the agricultural listed companies in more than 20 years of low-margin problem has not been solved. So to search the main factors which affecting agricultural listed companies profit difference has very important practical significance. Based on the 35 agricultural listed companies from two A-share market mainboard as the research sample, from the enterprise level and industry level two aspects of selecting indicators, build panel data model and the hierarchical linear model to study the internal and external factors that affect agricultural listed companies profit margins difference, it is concluded that enterprise layer factors and industry factors in their impact on corporate profit margins, and industry layer between the factors of enterprise layer and profit margins.At the begin, this paper try to ravel out the source of corporate profits factors into internal factors and external factors the industry in theory view; then investigated from financial indicators, macroeconomic contact with the industrial output to do qualitative research for agriculture listed company at present situation, show that agricultural listed companies from the listed companies with poor business conditions, and its profit margins comparing to the macro environment and industry environment, show that profit margin trends closely related to the external environment of the facts; third, according to the "development of things is affected by both internal and external", using the panel model to investigate the enterprise layer factors how to affect agricultural listed companies profit margins; finally, in order to analyze the external impact of agricultural listed companies by industry further, this paper introduces the hierarchical linear model. In Panel Model, agricultural listed companies’ financial statements from 2010 to 2014 to select 35 agricultural listed companies which up to standard as samples to study and. Multi-layer linear model using cross-section data of one year, according to the nesting characteristics of enterprise data and industry layer data to separation industry layer factor regulating effect between enterprise layer and profit margins.Empirical findings as follow: internal factors are the main factors affecting the source of corporate profits, but the impact of industry level has reached about 11%, indicating that the industry level factors on profit margins can’t be ignored. At the enterprise level, firm size, technology investment, salary structure, growth rate, earnings, enterprise value, government subsidies, shareholders properties on profitability was not significant; debt levels, firm age, capital intensity, return to shareholders, equity ratio, tax Shipping, the proportion of the largest shareholder, the proportion of the top five shareholders a significant impact on profitability. At the industry level, the degree of market concentration had no significant effect, barriers to entry, market competition, capital-intensive industry, industry subsidies, rate, the impact of technology-intensive on profitability significantly. Further studies showed that the degree of market competition will strengthen the positive correlation between profitability and shareholder returns, industry Subsidies would significantly weaken the positive correlation between the equity ratio and profitability, will strengthen the tax benefits associated with negative profitability, barriers to entry significantly weaken tax benefits and negative correlation between the rate of profit, will strengthen the positive correlation between the equity ratio and profitability.According to the empirical results put forward the following suggestions: first, agricultural listed companies should be proper training resources and technical advantages; second, reasonable to use preferential policies, the government’s preferential policies should be targeted; third, should strengthen internal management, improve the executive incentive plan, optimize the equity structure, adjust the structure of capital, reasonable use of indebtedness; Finally, improve profitability of agricultural listed companies also need to improve the level of industry competition, encourage competition, thus improve the entry barriers of the agricultural industry, improve industry concentration.