Open AccessThe Impact of Operational Capabilities on Corporate Performance: Evidence from Listed Companies in the Agriculture, Forestry, Livestock Farming, Fishery Industry
Author(s) -
Maoguo Wu,
Daimin Lu
Publication year - 2019
Publication title -
accounting and finance research
Language(s) - English
Resource type - Journals
eISSN - 1927-5994
pISSN - 1927-5986
DOI - 10.5430/afr.v8n2p56
Subject(s) - agriculture , business , china , panel data , livestock , empirical research , industrial organization , economics , forestry , econometrics , philosophy , epistemology , geography , ecology , political science , law , biology
In China, the agriculture, forestry, livestock farming, fishery (AFLF) industry is the basis of all industries. However, the overall development and performance level of listed companies in the AFLF industry is lower than the overall market level. According to previous literature, there is generally a positive impact of operational capabilities on the corporate performance of listed companies, but the impact on listed companies in the AFLF industry has not been investigated. This study attempts to fill in the gap by empirically analyzing the impact of operational capabilities on the corporate performance of listed companies in the AFLF industry in China. Based on a panel data set of 43 listed companies, this study performs regressions using a fixed effect model and a threshold panel model. The results show that there is a positive correlation between the operational capabilities and the corporate performance of listed companies in the AFLF industry, but different indicators that represent operational capabilities have different impacts on corporate performance. Based on the empirical results, this study puts forward corresponding suggestions for listed companies in the AFLF industry and policy makers.