Optimizing Resource Allocation to Enhance Sustainable Management of Agricultural Enterprises: Insights From Biological Asset Management Practices of Listed Companies in China

Biological assets are the core production factors for agricultural enterprises and significantly affect their sustainable operations. This article takes A‐share listed agricultural companies that disclosed biological assets separately from 2012 to 2021 as the research sample to explore the impact of biological asset holdings on corporate profitability. The study finds a dual effect and regulatory mechanism between agricultural enterprises' holdings of biological assets and their profitability: the expansion of scale has a lagging inhibitory effect on profitability; current growth significantly promotes profitability; and the lagging scale inhibitory effect is weakened by the regulatory effect of biological asset growth fluctuations. This means that the growth fluctuations of biological assets can activate and enhance the operational efficiency of enterprises regarding their existing large‐scale assets, transforming redundant resources into competitive advantages and alleviating the burden of the scale of biological assets on the enterprise. Furthermore, a high inventory turnover rate will inhibit the profitability of agricultural enterprises holding biological assets; in the context of policy support, fiscal and tax subsidies have a phased impact on corporate profitability, initially suppressing and then promoting it due to excessive reliance and the timing of fund disbursement. Based on this, the article proposes suggestions from three aspects: optimizing biological asset operation strategies, improving market‐oriented sales mechanisms, and enhancing the timeliness of government subsidies, aiming to provide references for agricultural listed companies to improve asset efficiency and for the government to refine industrial policies, thereby supporting the sustainable development of agricultural enterprises. [EconLitCitations: M14, M21,M41, Q12].