Chinese Journal of Population, Resources and Environment (Jun 2021)
Is China's agricultural enterprise growing steadily? Evidence from listed agricultural companies
Abstract
Agricultural enterprises are integral for agricultural modernization, serving as a bridge between scattered small-scale farmers and modern markets. However, agricultural competitiveness is still weak in China. This paper uses the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) method to measure the growth performance of China's listed agricultural companies and analyze its influencing factors based on Panel-Corrected Standard Errors (PCSE) to verify whether they are capable of achieving sustainable development. The findings confirm that first, listed Chinese agricultural companies have significantly increased profitability and scale in recent years but are still weak compared to other industries. The growth performance of such enterprises is generally stable, the difference between them is decreasing, and their growth ranking fluctuates greatly, with significant regional and industrial characteristics. Second, technological efficiency, scale, and age are positively related to the growth of listed agricultural companies. The diversification and expansion of business harm the profitability and development of enterprises. Currently, financial support can satisfy the short-term profit-seeking demands of enterprises but is inadequate to improve the ability of enterprises to grow. Third, China's listed agricultural companies need to devise policies through a forward-looking perspective and use them more effectively. Additionally, the transformation opportunities introduced by non-agricultural capital into agriculture deserve attention. When agricultural enterprises realize technological progress via modern capital, they understand the importance of utilizing and integrating technological innovation and increase the efficiency of transforming new technology into productivity. Policy orientation should be attentive to the public welfare of these listed companies and take into account the demands of corporate profits to realize the long-term sustainable development of enterprises and regions.
