Research On The Impact Of Debt Financing Of Agricultural Listed Companies On Firm Performance

The operation of the enterprise requires funds to support,and the capital plays a vital role for the enterprise.The financing methods mainly include internal financing and external financing,and the degree of influence of different financing methods on performance is also different.As an important part of the capital structure,debt financing structure will not only affect the profit level of enterprises,but also affect the business activities of enterprises.As a traditional industry in China,agriculture is an important part of the national economy and plays an irreplaceable role in promoting economic development.However,in recent years,the overall strength of agricultural enterprises is not strong,the profitability is obviously behind other industries,and the financing ability is poor.How to improve the efficiency of agricultural enterprises is worthy of our study.As a leader in the agricultural industry,agricultural listed companies bring vitality to agricultural development.This paper takes agricultural listed companies as the research object and starts to improve the performance of enterprises,and studies the impact of different "quality" debts on company performance.Establish a reasonable debt financing method to increase the value of agricultural enterprises.The research ideas of this paper can be roughly divided into two aspects:theoretical analysis and empirical analysis.In terms of theoretical analysis,the research background,research purpose and significance of this paper are firstly presented.Then,the domestic and foreign research literature on debt financing on corporate performance is reviewed.Finally,the related concepts about financing structure and performance are elaborated.In the aspect of empirical analysis,45 qualified agricultural listed companies were selected as research samples,and the data of 2011-2017 was used as the research object to analyze the actual status of debt financing and corporate performance of agricultural listed companies during the past seven years.Then use the factor analysis method to obtain comprehensive indicators from a number of measures reflecting the performance of agricultural listed companies,and fully reflect the performance of enterprises.Finally,regression analysis is used to test the correlation between variables.The empirical results show that:(1)the total debt level of agricultural listed companies is not high,and the asset-liability ratio has a negative effect on corporate performance.(2)The production and operation of agricultural listed companies are affected by the season,resulting in a high proportion of short-term liabilities and a low proportion of long-term liabilities,but the short-term asset-liability ratio is negatively correlated with corporate performance,while the long-term asset-liability ratio is reversed.(3)Bank credit and commercial credit are important sources of funds for agricultural enterprises.The bank credit ratio is higher than commercial credit,but the bank credit ratio is inversely related to corporate performance,while commercial credit is the opposite.Finally,the corresponding recommendations are made from the agricultural enterprise itself,the bank and the government.Agriculture itself:(1)Enhance the strength of enterprises,increase the proportion of endogenous financing and equity financing,and seek a moderate level of debt.(2)Reasonably plan the term structure of debt financing.(3)Adjust the structure of debt sources and diversify to finance.Banks should strengthen their efforts to strengthen supervision of enterprises.Government:(1)Improve the credit rating system.(2)Encourage the development of the bond market.