The Impact Of Government Subsidies On The Operating Performance Of Agricultural Listed Companies

Agricultural enterprises are the foundation of China’s agricultural productivity,representing the development trend of the primary industry,guiding the direction of China’s sustainable and stable agricultural development,and are an important component of China’s agricultural development.In the context of big data and resource sharing,the government has implemented a financial subsidy policy to encourage the development of agricultural modernization,informatization,and intelligence,providing financial support to key agricultural enterprises,and encouraging and ensuring their healthy and sustainable development.Compared with ordinary agricultural enterprises,agricultural listed enterprises bear certain social responsibilities and are also the leaders in the industry,playing a pivotal role.Choosing agricultural leading enterprises as research subjects is representative and forward-looking.Effective government subsidies can guide,promote,and support industrial upgrading,form new economic growth points,and improve business performance.However,over the years,while enjoying government subsidies,agricultural listed companies in China have also encountered many problems: First,due to excessive dependence on government subsidies,enterprises have been unable to propose effective management strategies,resulting in stagnant overall development;Second,government subsidies increase the probability of agricultural listed companies entering the misconception of diversified cross-border operations,leading to some companies’ poor management,which leads to negative business performance,increased operational risk,and a crisis of delisting.Therefore,how to formulate and make good use of government subsidies to improve the operational performance of China’s agricultural listed companies and promote the development,transformation,and upgrading of the agricultural economy has become the focus of public attention.This article uses a case study method to first study the impact of government subsidies on operating performance of agricultural listed companies.Using panel data from 27 A-share agricultural listed companies in Shanghai and Shenzhen for 10 consecutive years from 2012 to 2021,we obtain a significant positive impact of government subsidies on agricultural listed companies through regression analysis.Then select Beidahuang Agricultural Co.,Ltd.for a typical case study.Based on the government subsidies and operating performance data of 27 agricultural listed companies from 2012 to 2021,a large sample regression analysis was conducted to determine whether there is a correlation between government subsidies and operating performance of agricultural listed companies.The results show that the large sample regression analysis results are consistent with the case analysis results.Government subsidies have a direct and significant positive impact on the operating performance of Beidahuang and 27 agricultural listed companies.On the other hand,the government can also stimulate the operating performance of Beidahuang and agricultural listed companies through the intermediary effect of research and development investment.