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An Empirical Study of sustainable development of agricultural listed companies

Author: DingXin LuZuo From: www.yourpaper.net Posted: 2010-04-05 01:32:32 Read:
[Abstract] The author based on James. C. Van Horne sustainable growth model, using the mean difference significance test, the Wilcoxon signed rank test and regression analysis, empirical studies of the sustainable growth of agricultural listed companies in China. The study results show that: the sustainable growth rate and the actual rate of growth of agricultural listed companies significantly not equal to 73.64% of agricultural listed companies over growth; sales margin decreased year by year and the capital structure is irrational agricultural listed companies from the sustainable the main reason of the growth path. I further reason to start, made a number of recommendations for.
[Words] of agricultural listed companies; sustainable growth; Empirical Analysis

Introduction

Agriculture is the foundation of the national economy, the birth and development of agricultural listed companies to accelerate agricultural modernization in China has important significance for China's agricultural structure adjustment. However, in recent years, frequent landslides reported by the agricultural performance of listed companies, exposing a series of recession, such as the main business, diversified business blunders. The concept of sustainable development in the 1970s, was formed in the 1980s to the 1990s the development of our country and in many countries of the world the principle of strategic thinking. In March 1980, the United Nations General Assembly for the first time to use the concept of "sustainable development". In 1987, the World Environment and Development Committee released a report entitled "Our Common Future" report, the system of "sustainable development" strategy. China's scientific development concept more fully implement the concept of sustainable development. Then, based on the enterprise level perspective, the sustainable development of China's agricultural listed companies in the end how? Excessive growth or lack of growth? What factors affect the sustainable development of agricultural listed companies? How to achieve the sustainable development of agricultural listed companies ? These have become the urgent need to address the problem. This article by China agricultural listed companies' financial data from 2003 to 2007, the mean difference significance test, rank test and regression analysis to study the situation and reason of the sustainable development of agricultural listed companies, in order to come to for the sustainable development of agricultural listed companies operating way to provide a reference for agricultural listed companies comprehensively implement the scientific concept of development to achieve sustainable development.

Second, the literature review and research design

(A) review of the literature
The study began in the sustainable development of enterprises abroad Robert. C. Higgins (1977) from the point of view of corporate financial management point of view of sustainable growth of enterprises. The James. C. Van Horne (1988) follows Higgins enterprise sustainable growth meaning and enterprise development based on sustainable growth model. After the study on the sustainable development of enterprises are mainly concentrated in its influencing factors: Storey (1994) that properly combine the three elements of the entrepreneurs, enterprises and business strategy, the enterprise in order to achieve sustained growth; Hay Michael and Kamshad Kimya ( 1994) that the main factors of the growth of small businesses through empirical analysis two categories, namely external factors and internal factors, and including debt and lack of financing capacity, lack of access to risk capital capacity, not enough qualified labor 12 of the main factors. Domestic research for sustainable development of enterprises mainly focus on two aspects: 1. Qualitative or quantitative analysis, Xiaoqiu (2001), Huang the speed Chien-Lu Sheng (2002) and Lu Guo (2003 causes of listed companies in the sustainable development of ineffective ); 2. quantitative study of the factors listed company's ability to continue to develop or affect sustainable development by building a series of evaluation. Fan Ming, Tang Xuejun (2004) believe that corporate sustainable growth of the four forces latitude structure the industry force latitude technical force latitude, regime forces Latitude and market power to latitude; Su Dongwei, Wu Yang Confucianism (2005) constructed a novel listed company sustainable development metering model, and for the first time use screen data measurement methods for empirical research; Fanghua Wang, Xiao Hailin (2005), "ten demands" mode that the enterprises to achieve sustainable growth, and must follow the ten management demands. In contrast, the domestic small for the sustainable development of agricultural listed companies, Chang Chin-hua (2003), Zhu Xiang and Cai Ming Chao (2005) on the sustainable development of agricultural listed companies done qualitative analysis, Wang Yuchun and flowers such as expensive (2006 ) analysis of the sustainable growth of agricultural listed companies in China from the perspective of financial condition and reason. However, empirical studies about the sustainable development of agricultural listed companies is also less. In this paper, based on this background, the sustainable development of agricultural listed companies in the empirical analysis to provide empirical evidence can learn to improve the capacity for sustainable development of China's agricultural listed companies and to comprehensively implement the scientific concept of development.
(B) model selection
For the selection of the model, the author believes that Higgins sustainable growth model in (corporate intend to market conditions allow the growth rate of growth, managers can not or do not want to offer new shares, the companies have and intend to continue to maintain a target capital structure and target dividend policy) formed under the constraints of the three hypotheses, a static model is not consistent with the actual situation of enterprises, the practical application of some limitations (Linna, 2008). Van Horn sustainable growth model more emphasis on the sustainable growth rate is a target value, starting from the static model, dynamic sustainable growth model obtained by changing the assumptions. Author James C. Van Horn's sustainable growth model in order to ensure the correctness of the empirical test, validate our Shanghai deep agricultural listed companies sustainable growth condition. James C. Van Horne sustainable growth model is calculated as follows:
Sustainable Growth Rate (SGR) = sales margin x total asset turnover กม กม, revenue retention rate equity multiplier / (1 - revenue retention rate of sales margin x total asset turnover x equity multiplier)
Sustainable Growth Model Description: 1. Sustainable growth rate depends on the following four factors: sales net profit margin, asset turnover, the rate of retained earnings and equity multiplier, a comprehensive reflection of the business (sales, net profit margin and asset turnover ), the efficiency of the financial activities of the financing (equity multiplier) and dividends (retained earnings rate), can be used to the comprehensive evaluation results of operations and financial condition of the enterprise. Sales net profit margin and asset turnover reflects the company's operational and management performance, the performance level of profitability and asset management; equity multiplier and retained earnings rate reflects the company's capital structure and financial policy, the former reflects the company's financial leverage policy, The latter reflects the management towards dividend attitude, both depends on the management of the authorities towards the trade-off of risks and benefits. The sustainable growth rate target operating ratio, debt ratio, and dividend payout rate, the largest annual growth rate of the company's sales, while the intrinsic growth capacity of enterprises currently operating efficiency and financial policy decisions. When sales growth in accordance with the ratio different from the sustainable growth rate, we need to change one or several ratios, adjust the operating policy or financial policy, adjust the growth rate of the enterprise management to enable enterprises to speed development to reasonable health.
The contents of this article specific empirical as follows: First, China's agricultural listed companies to achieve sustainable growth? Agricultural listed companies in China is excessive growth or lack of growth? Agricultural listed companies in China is not to achieve sustainable growth for financial reasons.
(C) sample selection and data sources
Agricultural listed companies in this article refers to the China Securities Regulatory Commission listed company according to the the listed companies Industry Classification Guidelines as defined in agriculture, forestry, animal husbandry and fisheries. Samples screened according to the following criteria: 1. To select agricultural listed companies in the market before 2003, as this article's sample data covering the years 2003-2007. Eliminate B, H shares listed companies. A-share companies in accordance with the relevant laws and regulations of the country, and B, H-share companies follow different accounting standards in the preparation of the financial statements, respectively (A-share companies to follow the Chinese accounting standards; B and H shares of the company in accordance with international accounting standards), and its lack of financial indicators comparable sex. T-listed companies. Excluded in * ST, ST or PT status. T class of listed companies restructuring, integration is very common, normal production and operation can not be sustained, accounting indicators of these companies do not have the reliability and relevance. Removed Incomplete data listed companies. Order of the sample selection, we end up with 110 valid samples, in particular the financial data of the 22 agricultural listed companies from 2003 to 2007. Agricultural listed companies' financial data used are from the CCER China's economic and financial databases. The data were analyzed using SPSS16.0 package.
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