Study On The Effect Of Targted Reserve Ratio Reduction Policy On Agricultural Listed Companies Effective Investment

In recent years,the reduction of agricultural investment scale and the decline of investment efficiency of agricultural enterprises have become prominent problems in the development of agricultural enterprises in China,which makes it difficult to help agricultural and rural development.To actively cope with the complex situation,the Agriculture Office of the CPC Central Committee and other seven departments jointly issued the Opinions on Expanding Effective Investment in Agriculture and Rural Areas and Accelerating the Improvement of outstanding Weaknesses in Agriculture,Rural areas and Farmers in July 2020.It is clear in the Opinions that investment in agriculture and rural areas should be increased,and private capital should be encouraged and guided to invest in agriculture,rural areas and farmers so as to expand effective investment in agriculture and rural areas.The targeted reserve ratio reduction policy launched by the Central Bank can guide credit funds into agricultural enterprises,alleviate the credit constraints of agricultural enterprises and improve their underinvestment.At the same time,as a liability,credit funds can play a governance effect to a certain extent and constrain managers’ investment decisions.Then it may have a certain impact on the scale of agricultural investment and the investment efficiency of agricultural enterprises.In view of this,this paper takes the reduction data of targeted reserve ratio reduction policy from 2010 to 2020 and effective investment data of agricultural listed companies as samples,reviews and summarizes domestic and foreign literature on influencing factors of agricultural effective investment and effect evaluation of targeted reserve ratio reduction policy,and based on financing constraint theory and debt governance theory,This paper discusses whether access to credit fund supply can increase the scale of agricultural investment and improve the investment efficiency of agricultural listed companies,and excavates its specific impact path.Further,from the four aspects of financial level of agricultural listed companies,investment efficiency of pure agricultural listed companies,industry heterogeneity and scale heterogeneity,the impact of targeted reserve ratio reduction policy on effective investment of agricultural listed companies is deeply discussed.(1)Targeted reserve ratio reduction policy can increase the investment scale of agricultural listed companies,that is,optimize the investment structure of agricultural listed companies;(2)The targeted reserve ratio reduction policy can improve the investment efficiency of agricultural listed companies,alleviate their underinvestment behavior and restrain their excessive investment behavior;(3)Targeted reserve ratio reduction policy affects the investment scale of listed agricultural companies in the agricultural sector by easing the credit constraints of listed agricultural companies,reducing their financing costs and increasing the availability of bank loans.At the same time,under the targeted reserve ratio reduction,commercial banks that meet the requirements prefer to issue loans to agricultural listed companies that have more collaterable items,thus effectively improving the investment efficiency of such agricultural listed companies.(4)Targeted reserve ratio reduction policy can precisely position the main business of agricultural listed companies without financialization.Compared with the full sample results,targeted reserve ratio reduction policy has a greater Influence of pure agricultural listed companies on investment efficiency.At the same time,from the perspective of industry and scale heterogeneity,targeted reserve ratio reduction policy can have a positive impact on the investment scale and investment efficiency of most sub-industry enterprises in the agricultural field,and the effect is more obvious in small-scale listed agricultural companies.The conclusion of this article reveals the orientation drop policy and the relationship between the agricultural listed companies effective investment,to improve the agricultural listed companies investment effectively,realize agricultural enterprise own development has provided the certain theory reference and also for the social from all walks of life to understand its credit funds,promote the healthy development of the agricultural industry,accelerate rural revitalization provides some empirical evidence.