Determining factors of financial performance of agricultural listed companies in China

This paper aims to analyze the determinants of financial performance of agricultural listed companies in China. Multiple regression approach is applied based on the sample of 39 agricultural listed companies during the six-year period (2013-2018). Financial performance is measured by return on sales (ROS), return on assets (ROA), and return on equity (ROE). Internal factors include firm size, current ratio, debt ratio, long-term liability ratio, sales growth rate, capital intensity, research and development (R&D) intensity, export intensity, and ownership, and external factors include gross domestic product (GDP) growth rate and consumer price index (CPI) growth rate. The results show that financial performance of China's agricultural listed companies is positively related to firm size, long-term liability ratio, and sales growth rate and negatively related to debt ratio, capital intensity, and export intensity. In addition, external factors have no significant impact on financial performance. This paper may provide useful information for managers as well as policymakers to improve financial performance and achieve corporate sustainable development.