Analysis of the Factors of TVE's Profitability in Xinjiang District

Abstract

This paper examines the determinants of the profitability of Xinjiang's township and village enterprises. Panel and cross-sectional analyses of profit equations are conducted among collective-owned, shareholdings, and private fund township and village enterprises. Liability-asset ratio is positively related to private township and village enterprises, but negatively related to COTVEs in most cross-sectional and all panel regressions. Management ability is positively related to profitability in the estimation results of shareholding and private fund enterprises in all regressions. Wage per capita is positively related to the profitability of shareholding enterprises, but in most regressions, it is negatively related to the profitability of collective-owned and private fund enterprises. Estimation results for enterprise size are negative in most cross-sectional and panel regressions to all ownership of township and village enterprises.