Analysis On Influencing Factors Of Profitability Of A-share Agricultural Listed Companies

Agriculture is the foundation industry of the national economy,and the sustainable development of agriculture is an important guarantee for China’s sustainable economic development.Agricultural listed companies are an important force in promoting the sustainable development of modern agriculture,and they have played a leading role in promoting the transformation and modernization of China’s agricultural industry.Based on the leading role of agricultural listed companies in China’s agriculture,their profitability and operational level can have a huge impact on corresponding regions and sectors of agricultural production.However,over the past decade,the profitability of China’s agricultural listed companies has been generally worrying,and it is urgent to study how to improve their profitability.Therefore,this article takes the profitability of agricultural listed companies on China’s A-share market as the research object,systematically quantitatively analyzes the key factors that affect their profitability,finds out the path to improve the profitability of agricultural listed companies,and puts forward policy recommendations to improve the operating level of agricultural enterprises.This article takes the net profit margin of total assets as the indicator to measure the profitability of agricultural listed companies,selects 8 influential factors including assetliability ratio,equity concentration,operating level of agricultural business,tax subsidy intensity,income subsidy intensity,earnings per share,net asset profit margin,and sales profit margin.Thirteen agricultural listed companies that meet the conditions are selected,and their financial data from 2011 to 2021 are collected for empirical analysis.When exploring the factors influencing the overall profitability of agricultural listed companies,through theoretical analysis and empirical testing,it was found that the eight factors are positively correlated with the profitability of the overall agricultural listed companies.Furthermore,the operating level of agricultural business and income subsidy have the greatest impact on profitability,while the other six factors have been tested for their significance level at 1% and also have good explanatory power.The relevant research hypotheses have been verified.In exploring the factors affecting the profitability of agricultural listed companies by segment,the 13 agricultural listed companies were divided into two segments according to their main business: the agriculture and forestry sector and the livestock,agricultural and sideline food sector.Multiple linear regression analysis was conducted on each segment separately.Through empirical testing,it was found that among the listed companies in the agriculture and forestry sector,equity concentration,tax subsidies,earnings per share,net asset return rate,and sales profit margin have a significant positive correlation with their profitability,while the impact of the other factors on profitability is relatively small.In the livestock,agricultural and sideline food sector,the profitability of listed companies is mainly affected by the level of asset-liability ratio,equity concentration,tax subsidies,earnings per share,net asset return rate,and sales profit margin.Finally,targeted countermeasures and policy recommendations were proposed based on the types of listed agricultural companies from both the enterprise management and government policy perspectives.