The Impact of Operational Capabilities on Corporate Performance: Evidence from Listed Companies in the Agriculture, Forestry, Livestock Farming, Fishery Industry

Abstract

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.