Study On The Effect Of Government Subsidy On The Investment Strategy Of Agricultural Listed Companies

Seeing that agriculture is the lifeblood of China's economic development,how to deepen supply-side structural reform in agriculture and forge ahead with the agricultural and rural rural modernization under the new normal is the main problem to the economic development of agriculture at the present stage.As the representative and leading enterprises of agricultural modernization,agricultural listed companies have acquired policy support from the central government and local governments for years.Since 2007,the government has increased its support for the agricultural listed companies and the number of these companies has grown up rapidly in such circumstances,whereas the problem of low operational efficiency has not been improved fundamentally.Under the circumstances that previous studies mostly concentrate on the effect of government subsidy on the business performance,output and research investment of enterprises,this paper analyzes the effect of government subsidy on the investment strategy of agricultural listed companies from the perspective of the stimulation of the government subsidy to the investment of agricultural listed companies,with a view to provide a substantial evidence basis for the decision-making departments to make policies and for the companies themselves to make full use of the policies advantages.To achieve the above said study objectives,this paper first generalizes and summarizes the status quo of the agricultural listed companies subsided by the government and the operating characteristics of them through collecting the concerning statistics on the annual report of those companies and on the State Statistical Yearbook.And then econometric models of government subsidies and different investment choices of agricultural listed companies will be established for quantitative analysis of the relationship between them.The following are the main conclusions acquired in this paper:(1)Since 2007,the government subsidy has been powerful and extensive,but the agricultural listed companies have performed poorly.(2)Government subsidy has a distinct positive effect on the fixed assets input of agricultural listed companies,on the contrary it has an obvious negative effect on the intangible assets input.(3)In the area where the economy grows slowly,the effect of government subsidy on the fixed assets input of agricultural listed companies is strong.The main policy meanings exist in the study conclusion:(1)Encourage the enterprises use government subsidy reasonably and avoid blind investment owing to the pursuit of government subsidy.(2)Reduce the government subsidy with a view to boost short-term economic growth.(3)Establish and improve the post-subsidy supervisory mechanism that is scientific and effective.