Abstract
Debt financing and diversification are two important characteristics of agricultural listed companies in China. This paper uses multiple linear regression model with financial data of 52 agricultural listed companies from 2009 to 2014 in Chinese Stock Exchanges to study the mediating effect of diversification on debt financing and operating performance. Results show that debt financing has a significantly negative impact on operating performance, and diversification plays a partial intermediary role between debt financing and operating performance.
Highlights
Agriculture plays an important role in the development of the national economy and the stability of society in China
As shown in the table, there is no significant correlation between the independent variables (
This paper sets out to investigate the impact of debt financing on operating performance of agricultural listed companies
Summary
(2016) Research on the Relationship between Debt Financing and Operating Performance Based on Mediation of Diversification. Based on perspectives of financing and investment, this paper attempts to explore the impact of debt financing and diversification on operating performance of agricultural listed companies. Researches on the financing constraint problem mainly focus on how internal cash flow affects investment behavior of enterprises [5] [6]. We introduce diversification as a mediating variable into the study and research the relationship between debt financing and operating performance. We try to answer the following two questions: 1) Whether debt financing has a direct impact on operating performance of agricultural listed companies? 2) Whether diversification plays an intermediary role between debt financing and operating performance of agricultural listed companies? We try to answer the following two questions: 1) Whether debt financing has a direct impact on operating performance of agricultural listed companies? 2) Whether diversification plays an intermediary role between debt financing and operating performance of agricultural listed companies?
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