Study On The Main Reasons And Countermeasures Of The Difficulties In Equity Financing Of Farmer Specialized Cooperatives In China

By the end of 2018,although the number of registered farmers' professional cooperatives in China has been growing rapidly,not many farmers are really driving them to become rich,because the cooperatives are weak in overall strength and small in scale,which is mainly caused by the difficulty in financing.Equity financing of internal members is the first cornerstone of the establishment of cooperatives and the most basic financing means of cooperatives.But from the actual situation,its financing situation is not satisfactory,especially the majority of ordinary members of the investment enthusiasm is not high.As an organization owned by farmers,managed and benefited by farmers'democracy,and as the owner and beneficiary of cooperatives,this paper intends to study why most of the members lack enthusiasm for investment.Most foreign studies associate cooperatives with IOFs[investor-driven firms,that is,investor-owned enterprises].For comparative analysis,domestic research often draws on foreign research conclusions.But as a result of internal and external environment for the development of sino-foreign cooperative members,cooperation culture,quality,etc.There is a big difference,influence factors are the same need to verify,such as equity financing is difficult to really fuzzy caused by property right relations,one person one vote democratic voting system,such as the limited return on capital system design whether inhibition of members of the investment also need to go through the empirical validation.Therefore,in order to verify the above conclusions,117 cooperatives in nine provinces in China were investigated by questionnaire based on the project support of my mentor,the national social science fund.It was found that the vast majority of cooperatives in China are not products of cooperative values and culture,but products of pragmatism.In reality,the property right relationship is basically clear.The democratic voting system of one person,one vote and the limitation of stock return rate have not been strictly implemented,or even never implemented.At the same time,the equity financing of cooperatives has the following problems:(1)the equity financing is insufficient,and the capital mainly comes from the core members,while the equity financing of ordinary members is difficult;(2)common shares are predominant,while preferred shares are scarce;(3)the distribution of shares is unreasonable,and the phenomenon of "one share or several shares are dominant" is obvious in the ownership structure;(4)members' equity financing is clustered near the minimum threshold,and even some members do not invest;(5)the equity capital formed by equity financing is unstable.Through the establishment of Tobit model regression,it is found that the strength of cooperatives is the primary influencing factor for equity financing of cooperatives.The reason lies in the strong strength of cooperatives,which can bring benefits to members and members are willing to invest.Secondly,membership and chairman's background have important influence.Core members(main board members)are more active in equity financing,and they have the decision-making power and control power of cooperatives.The chairman has abundant social capital and management strength,which are crucial for cooperatives.Thirdly,the property right system is an important influencing factor of equity financing.The clearer the property right relationship is,the stronger the property right transferability will be,and the stronger the investment enthusiasm of the members will be.Finally,the cooperative governance system and government support factors.To solve the problem of equity financing,members need to increase funds,strength,social capital;Cooperatives should improve their profitability,establish an"incentive compatibility" mechanism for benefit sharing,attach importance to the cultivation of chairperson's ability,and strengthen the standardization of distribution,property rights,finance and supervision systems.The government strengthens the support dynamics,consummates the financing environment;The government and cooperatives should strengthen publicity and education of the culture of cooperation.