The Impact Of Financial Subsidies And Tax Preferences On The Performance Of Agricultural Enterprises

Agriculture is the primary industry and plays an important role in the social economy.China is a large agricultural production country and has a large agricultural population.According to the data of the National Bureau of statistics,the value added in the first industry of our country reached 6 trillion and 367 billion 280 million yuan in 2016,accounting for 8.6% of the gross domestic product.The employment personnel in the first industry reached 214 million 960 thousand,accounting for 27.7% of the total number of employees.The development of the agricultural economy will have an important impact on the development of the national economy and the social stability.At the same time,agriculture is weak and unstable,agricultural production is very sensitive to natural conditions,the production cycle is long,and the risk is high;agriculture has multi-function,making agriculture have some characteristics of public products.Because of the objective property of agriculture and the important role played by agriculture in the national economy,our government attaches great importance to the development of agriculture.The state has launched a series of fiscal subsidy policies and preferential tax policies to protect the development of agricultural industry.Since 1990,our government has increased the financial input of the "three rural".In 2014,the government expenditure on agriculture,forestry and water affairs reached 1 trillion and 417 billion 380 million yuan which accounted for 9.3% of the total amount of fiscal expenditure.In 2015,the expenditure of the financial agriculture,forestry and water affairs increased by 22.6%,reaching 1 trillion and 738 billion 49 million yuan which accounted for 9.8% of the total amount of fiscal expenditure.The government expenditure on agriculture,forestry and water affairs reached 1 trillion and 858 billion 736 million yuan in 2016.It accounted for 9.9% of the total financial expenditure.At the same time,China’s agricultural enterprises enjoy preferential tax policies to varied degrees.Under the background of the government implementing fiscal subsidy policy and preferential tax policy vigorously,has the core competitiveness of agricultural enterprises been improved? What are the effects of fiscal subsidies and preferential tax policies on the performance of agricultural enterprises?This paper uses 55 listed agricultural listed companies listed in Shanghai Stock Exchange and Shenzhen Stock Exchange from 2012 to 2016 as samples to measure the enterprise performance by DEA method.The effect of financial subsidies and tax incentives on the performance of agricultural enterprises is empirically studied using Tobit model.The results show that,first of all,during the period of 2012 to 2016,the overall efficiency of agricultural listed companies in China had been greatly fluctuated,showing a trend of rising and decreasing.There was much room for improvement in the efficiency of agricultural listed companies.Second,during the period of 2012 to 2016,the scale efficiency of agricultural listed companies in China had been greatly fluctuated.In the enterprises that had not reached the scale and effective,the vast majority were in the state of increasing returns to scale.It was necessary to enlarge the scale of the enterprises,optimize the scale structure and improve the efficiency of the allocation of the resources.Third,fiscal subsidies had no significant impact on the overall efficiency and technical efficiency of agricultural listed companies.However,these subsidies had significant impact on the scale efficiency of agricultural listed companies.Financial subsidy policy is inefficient in improving enterprise performance.Fourth,tax preferences have a significant positive impact on the comprehensive efficiency and the scale efficiency of agricultural listed companies while having no significant impact on the technical efficiency of agricultural listed companies.Tax preference policy had a high efficiency in improving enterprise performance.According to the above analysis,the following suggestions are put forward: first,the government should make the preferential tax policy as the main policy tool,further improve the tax preferential policy system,improve the stability of the policy,and standardize the management procedure.Secondly,the government should take the policy of financial subsidy as an auxiliary policy tool,so that the implementation of the financial subsidy policy is more transparent.Finally,the agricultural enterprises should make rational use of the preferential policies of fiscal and tax to optimize the allocation of resources,improve the ability of R & D innovation and improve their core competitiveness as their ultimate goal.