The Influence Of Capital Labor Ratio On The Financial Performance Of Agriculture-Related Listed Companies

Capital and labor elements are the most basic production factors of enterprises.The allocation of elements will affect the operational efficiency of enterprises,and then affect the financial performance of it.In recent years,China's factor endowment environment has undergone profound changes,the loss of unlimited supply characteristics of labor force and the rising cost of employment have created a logical chain type of endogenous inversion mechanism for enterprises to replace labor with capital.In addition to internal factors,the excessive investment of local governments and artificial distortion of factor prices also promote capital densification.The trend of capital deepening has been confirmed by many scholars,but opinions on the effect of capital labor ratio on performance are different.The existing capital labor ratio research is more focused on industry than on other industries.Although the degree of capital deepening in agriculture is less than that of the second and third industry,it is also accelerating.As an important representative of agricultural industrialization Management in China,it is necessary to clarify the relationship between capital labor ratio and financial performance of agriculture-related listed companies.This paper selects the annual report data of 170 agriculture-related listed companies in2008-2017 from Shanghai and Shenzhen A shares as the research samples,and the statistical analysis shows that the phenomenon of capital shallowing and deepening occurs during the sample period,and the trend of capital deepening appears in recent years.The multiple regression results show that the capital labor ratio has a negative impact on the financial performance of agriculture-related listed companies,that is,the higher the capital labor ratio,the more unfavorable it is for companies to increase their financial performance.For further in-depth analysis,the sample companies are divided into three categories:upstream(agricultural machinery,fertilizers and pesticides),midstream(Traditional agroforestry,pastoral and fishery)and downstream(food processing,manufacturing)according to the whole industrial chain of agricultural operations.The longitudinal comparison results show differentiation characteristics,specifically,The upstream and downstream capital labor ratio has a negative and significant effect on the financial performance,while in the midstream,the capital labor ratio has no statistical significance on it,which needs to be further studied in the future.According to the conclusion,the government should avoid excessive investment,intervene the finance reasonably,construct and perfect the factor market,guide enterprises to optimize factor input.The companies should reasonably allocate elements according to the actual endowment advantages,avoid excessive capital deepening and steadily promote the optimization and upgrading of factor structure.