Research On The Relationship Between Equity Capital Cost,Internal Control Quality And Corporate Performance In Agricultural Enterprises

At present,the domestic macroeconomic development has entered a new normal,and the development situation faced by agricultural enterprises has also changed.The development situation of agricultural enterprises has also changed.Compared with ordinary agricultural enterprises,listed agricultural companies have more advanced productivity and to a certain extent represent the development status of agricultural enterprises in China.However,listed agricultural companies are not the hotspots of capital flow in the capital market,coupled with the frequent occurrence of a series of agricultural frauds and frauds,the growth of management levels and the extension of management chains caused by some agricultural enterprises’ blind attempts to diversify their business,which also intensify the information asymmetry phenomenon,making investors in the capital market doubt the authenticity of the operation of agricultural enterprises,and investors who invest in them will increase the necessary return on investment as a result.In order to optimize the business situation and achieve long-term development,agricultural enterprises should establish good information communication channels with investors,while internal control,as a corporate governance tool,can effectively play the role of signaling and become an effective signal of good business conditions released by the management to alleviate the " The problem of "seeing things in the fog",so that investors make reasonable information decisions and improve the objectivity of investment claims.Based on this background,this paper introduces three variables: cost of equity capital,corporate performance and internal control quality to explore the relationship between these three variables in agricultural enterprises.Based on a review of relevant domestic and international literature,this paper proposes corresponding hypotheses and establishes corresponding regression models after conceptual definition,theoretical foundation analysis and impact mechanism analysis of cost of equity capital,quality of internal control and firm performance,and selects operating data of agricultural listed companies and non-agricultural listed companies from 2013 to 2020 as samples to explore and compare the relationship between cost of equity capital,quality of internal control and firm performance in agricultural The paper explores and compares whether there is a hypothesized relationship between cost of equity capital,internal control quality and firm performance in listed agricultural companies.This paper concludes the following after regression analysis and robustness test:(1)Cost of equity capital is significantly and negatively related to firm performance in agricultural listed companies.(2)Internal control quality is significantly and positively related to firm performance in agricultural listed companies.(3)In agricultural listed companies,internal control quality enhances the negative correlation between cost of equity capital and firm performance,i.e.,internal control quality plays a moderating role between the two.It indicates that in the capital market environment with information asymmetry,the good development of this type of enterprises cannot be achieved without a good internal control environment,and good internal control can provide investors with more robust risk identification signals for investing in this type of enterprises,which helps external investors to better grasp corporate risks and invest rationally.After drawing relevant conclusions based on the research results,this paper proposes countermeasures and suggestions from three aspects:agribusiness itself,investors and external regulation,in order to provide reference and reference.