An Empirical Research on Performance Effect of Financial-Industrial Integration on the Listed Companies
|School||Zhejiang University of Finance|
|Keywords||the integration of industry and finance the listed company performance effect the integration degree the empirical analysis|
The integration of industry and finance is an inevitable product by the development of the market economy. As China the further development of international economic integration, along with the reform and opening up of our country, the issue of Chinese enterprise’s market competitiveness and international competitiveness low is gradually displayed, originally single production management mode is not fit for the requirement of the development of The Time, many enterprises choose to involved in capital market, all spend in financial institutions, the integration of industry and finance will become Chinese enterprise’s the basic strategic choice. However, the history of the integration of industry and finance in our country is shorter than western developed countries, the integration of industry and finance theory study lags behind the present situation of the integration of industry and finance, moreover, our country enterprise’s market environment is special, capital market’s growth is immature; in 2004, De Long group bankrupt, and that alarm the companies that have already prepared to carry out the policy. Therefore do research in the integration of industry and finance that based on own feature is very important.This paper bases on the traditional theory of industrial organization, combing with knowledge of finance, based on the theory of the integration of industrial capital and financial capital to study Chinese listed company’s specific issue of the integration of industry and finance, using theoretical analysis and quantitative models to analysis Chinese listed company’s enterprise’s performance after the integration of industry and finance. This paper first clear with related concepts about the integration of industry and finance, and extend the content. From the institutional factor, the level of productivity development factor, financial price level factor, the international economic development to discuss these factors how to influence the process of the integration of industry and finance, and in certain condition, these influence factors under what condition and with what kind of ways to realize the better combination. Through the mechanism positioning, market infrastructure construction, mechanism link to discuss the construction of the mechanism. From our country securities market perspective, focusing on the distribution characteristics of the industry, integration degree, integration model, this paper explain Chinese listed company with the characteristics of the integration of industry and finance, analysis of the reason why Chinese listed company conduct the integration, through quantitative test we know that the integration can’t realize the lower transaction costs and synergy effect, thus overthrew the traditional idea. Through the mathematical model we know the potential danger that our country’s faced with. With all the analysis, it is shown that Chinese listed company’s integration is still in the primary stage, it is just a kind of profit means, not strategic investment.This paper use qualitative analysis and empirical analysis. With Chinese listed company which conduct integration in 2005 as a statistical sample, using Logit regression to analysis the reason for integration, then conduct hypothesis test about Chinese listed company’s performance after integration which apply Wilcoxon rank test., last construct the tow unitary linear regression in order to analysis the relationship between the integration degree and enterprise performance.This paper studies these companies which want to increase their performance through integration of industrial capital and financial capital, and increase the market competitive has important theoretical and realistic significance. It is also useful to provide some theoretical reference foe the relevant departments of the state, the individual and institutional investor. In addition, for other company want to develop the integration provide some reference.