Research on Financial Support for the New Types of Agricultural Management Entities from thePerspective of the Rural Revitalization Strategy
Both the escape from the predicament of traditional financial support in rural areas and the cultivation of new types of agricultural management entities underlie, at a micro level, the improvement of a new-type of agricultural management system, and offer an important guarantee for the implementa...
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| Format: | Article |
| Language: | English |
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Editorial Department of Contemporary Social Sciences
2020-11-01
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| Series: | Contemporary Social Sciences |
| Subjects: | |
| Online Access: | https://css.researchcommons.org/journal/vol2020/iss6/2 |
| _version_ | 1811162834839535616 |
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| author | Wang Rui and Zhou Yingheng |
| author_facet | Wang Rui and Zhou Yingheng |
| author_sort | Wang Rui and Zhou Yingheng |
| collection | DOAJ |
| description | Both the escape from the predicament of traditional financial support in rural areas and the cultivation of
new types of agricultural management entities underlie, at a micro level, the improvement of a new-type
of agricultural management system, and offer an important guarantee for the implementation of a rural
revitalization strategy. In reference to the demands of carrying out reform, activating factors, invigorating
entities and stimulating markets during the implementation of this rural revitalization strategy, we are applying
a financing preference theory that infers and analyzes the excessive preference for new-type agricultural
management entities (family farms, specialized farmer cooperatives, specialized large family farms, and
modern agricultural enterprises) regarding government subsidies (quasi-equity financing). Our analysis has
identified crucial factors in the issue and predicts that government subsidies (quasi-equity financing) will crowd
out financial support funding (quasi-debt financing), and we offer empirical proof obtained through statistical
modeling. As our results indicate, financing costs, free cash flows, and the perceived income adequacy (PIA)
of new-type agricultural management entities all have significant influence upon decision-making for debt
financing by such entities. Therefore, with the concrete contents of the formulation of policies concerning the
financial support for rural agricultural strategy, one not only needs to consider the further decrease of financing
costs, but also should take into account both the designing of cash flow mechanism in the process of paying
both principal and interest, and the improvement of bankruptcy rules for agricultural management entities to
accelerate the transformation of family farms, specialized farmer cooperatives, and specialized large family
farms, towards modern agricultural enterprises. Meanwhile, upgrades to the supply chains of the agriculture
industry, improvements to the construction of the rural financial information system, building an accounting
system that meets the requirements of the rural revitalization strategy, and giving full play to the policies for
financial support, which assume an important role in activating factors and markets during the implementation
of the rural revitalization strategy, are also anticipated. |
| first_indexed | 2024-04-10T06:35:32Z |
| format | Article |
| id | doaj.art-c5911075cbbe4c5bbf7f2f1ad9dad594 |
| institution | Directory Open Access Journal |
| issn | 2096-0212 |
| language | English |
| last_indexed | 2024-04-10T06:35:32Z |
| publishDate | 2020-11-01 |
| publisher | Editorial Department of Contemporary Social Sciences |
| record_format | Article |
| series | Contemporary Social Sciences |
| spelling | doaj.art-c5911075cbbe4c5bbf7f2f1ad9dad5942023-03-01T02:46:32ZengEditorial Department of Contemporary Social SciencesContemporary Social Sciences2096-02122020-11-0110.19873/j.cnki.2096-0212.2020.06.002Research on Financial Support for the New Types of Agricultural Management Entities from thePerspective of the Rural Revitalization StrategyWang Rui and Zhou Yingheng0Nanjing Agricultural UniversityBoth the escape from the predicament of traditional financial support in rural areas and the cultivation of new types of agricultural management entities underlie, at a micro level, the improvement of a new-type of agricultural management system, and offer an important guarantee for the implementation of a rural revitalization strategy. In reference to the demands of carrying out reform, activating factors, invigorating entities and stimulating markets during the implementation of this rural revitalization strategy, we are applying a financing preference theory that infers and analyzes the excessive preference for new-type agricultural management entities (family farms, specialized farmer cooperatives, specialized large family farms, and modern agricultural enterprises) regarding government subsidies (quasi-equity financing). Our analysis has identified crucial factors in the issue and predicts that government subsidies (quasi-equity financing) will crowd out financial support funding (quasi-debt financing), and we offer empirical proof obtained through statistical modeling. As our results indicate, financing costs, free cash flows, and the perceived income adequacy (PIA) of new-type agricultural management entities all have significant influence upon decision-making for debt financing by such entities. Therefore, with the concrete contents of the formulation of policies concerning the financial support for rural agricultural strategy, one not only needs to consider the further decrease of financing costs, but also should take into account both the designing of cash flow mechanism in the process of paying both principal and interest, and the improvement of bankruptcy rules for agricultural management entities to accelerate the transformation of family farms, specialized farmer cooperatives, and specialized large family farms, towards modern agricultural enterprises. Meanwhile, upgrades to the supply chains of the agriculture industry, improvements to the construction of the rural financial information system, building an accounting system that meets the requirements of the rural revitalization strategy, and giving full play to the policies for financial support, which assume an important role in activating factors and markets during the implementation of the rural revitalization strategy, are also anticipated.https://css.researchcommons.org/journal/vol2020/iss6/2rural revitalization strategynew-type agricultural management entitiesfinancing costsfinancial support |
| spellingShingle | Wang Rui and Zhou Yingheng Research on Financial Support for the New Types of Agricultural Management Entities from thePerspective of the Rural Revitalization Strategy Contemporary Social Sciences rural revitalization strategy new-type agricultural management entities financing costs financial support |
| title | Research on Financial Support for the New Types of Agricultural Management Entities from thePerspective of the Rural Revitalization Strategy |
| title_full | Research on Financial Support for the New Types of Agricultural Management Entities from thePerspective of the Rural Revitalization Strategy |
| title_fullStr | Research on Financial Support for the New Types of Agricultural Management Entities from thePerspective of the Rural Revitalization Strategy |
| title_full_unstemmed | Research on Financial Support for the New Types of Agricultural Management Entities from thePerspective of the Rural Revitalization Strategy |
| title_short | Research on Financial Support for the New Types of Agricultural Management Entities from thePerspective of the Rural Revitalization Strategy |
| title_sort | research on financial support for the new types of agricultural management entities from theperspective of the rural revitalization strategy |
| topic | rural revitalization strategy new-type agricultural management entities financing costs financial support |
| url | https://css.researchcommons.org/journal/vol2020/iss6/2 |
| work_keys_str_mv | AT wangruiandzhouyingheng researchonfinancialsupportforthenewtypesofagriculturalmanagemententitiesfromtheperspectiveoftheruralrevitalizationstrategy |