An Empirical Study on the Impact of Financing Preference of China’s Agricultural Listed Companies on Corporate Performance

  • Xiaohu Liu, Zhaoxing Zhou, HanLi, Qian Yang, HongLi

Abstract

This paper uses the panel data of China’s A-share agricultural listed companies from 2015 to 2019, and from the perspective of financing priority theory, establishes a relevant model to analyze the impact of financing preferences on the performance of agricultural enterprises. Through analysis, it is found that Chinese agricultural listed companies prefer external financing, and especially have a strong preference for equity financing. The equity financing preference of listed agricultural companies in China will lead to irrational corporate capital structure, which is not conducive to improving corporate performance and hindering corporate sustainable development. Therefore, this article suggests that China's agricultural listed companies need to optimize their corporate capital structure and rationally use funds to increase corporate value and enhance the competitiveness of China's agricultural listed companies.

Published
2020-08-01
Section
Articles