The Effectiveness Of The Combination Of Industry And Finance In Chinese Enterprise Groups

Since the 1980’s of the 20th century, the western developed countries in order to improve their financial system, and actively promote a series of financial reform measures. The gradual integration of financial capital and industrial capital has become an important opportunity for the rapid development of the western economies such as the United States and Japan. Since the accession to the WTO, China’s economic status and enterprises’influence in the world are growing. In order to seek for further development, enhance the overall competitiveness of enterprises in the market, more and more Chinese companies continue to seek global strategic layout.Despite the complex and varied environment, the existing pace of the integration of the Chinese enterprise’s existing financial industry is still developing steadily, and is not restricted by external factors. You can see from the history of the development of large foreign enterprise groups, with business extending and expanding continuously, modern enterprises must seek diversified development, undoubtedly,industry and finance combination will provide a new way of development, whose effectiveness has been widely certificated for enterprise development. Producing combination can not only bring huge economies of scale and synergy effect. At the same time with the cooperation within the industry to greatly enhance the overall competitiveness of enterprises, so as to form the integration and optimization of the industrial chain, all-round improve the overall competitiveness of enterprises.Both Morgan group andthe post-war Japan’s six largest enterprise groups, their rapid rise and the rapid occupation and rapid growth of the market both come from the combination of production and finance.The combination of industry and financial is not only the trend of the times, but also one of the important development models of enterprise development and growth. While fully affirming the importance and necessity of IIFC, for different industries and different enterprises joint, how to really play the positive effect of each other, upgrade of industry and finance combination has become the future China’s state-owned assets supervision and Administration Commission and enterprises in industry and finance combination will have to deal with and resolve the problem. Therefore, during the second five year plan, the SASAC for the integration of the collection of the needs of the combination of future production and financial development direction and implement measures. The state owned assets supervision and Administration Commission and other departments in charge of industry under the premise of emphasizing the risk control, enhance the overall market, the core competitiveness of enterprises, continuously improve the enterprise’s own IIFC reflect the effectiveness of, the real use of the combination of Finance and industry development strategy improvement and improve the existing enterprises in the disadvantage position. Relative to the SASAC for the continuous implementation of the combination of financial and industry in recent years, the CBRC although cautious on the combination of the combination of production and financial attitude, but there is no prohibition and restriction. What’s the effect of the combination of enterprise groups in our country? The research of this article will answer the answer..Firstly, this paper builds the full text frame, including the background and significance of the full text, and thus forms the whole structure of the whole paper.. Secondly, this paper discusses the risks, concepts, and effectiveness of the combination of the domestic and international financial products, and summarizes the shortcomings and achievements of the paper. The concept of IIFC were clear, and combination of industry and finance theory includes the theory of transaction cost theory, asymmetric information theory has carried on the induction and the summary, in order to lay the theoretical foundation for the following research. The present situation and characteristics of domestic and international production and financial integration. The status quo and characteristics of the combination of enterprise groups in China are analyzed, and the status quo and the course of the domestic and international production and financial development are described.. The of industry and finance combination way and the way of realization are discussed in this paper: first, a brief introduction of the IIFC implementation. Secondly, on the choice of financial institutions were individually listed and described, and development of the enterprise group of our country industry and finance combination of paths and overseas property group development has carried on the analysis according to the development status and characteristics of summed up the main reason of current our country enterprise group financial investment. This paper also analyzes the factors affecting the efficiency of the combination of financial industry and financial, and discusses the possible influencing factors of the technical efficiency of the enterprise by the AHP. This paper analyzes the effectiveness of the combination of the industry and financial industry in China. For the feasibility of the study, the paper studies the changes of the financial indicators of the company after the financial integration, and analyzes the impact of the combination of the financial industry and the combination of the financial industry and the efficiency of the combination and the effect of the synergy. This paper also carries on the risk management and policy suggestion of the combination of enterprise group in our country.This paper analyzes the risk problems of the combination of enterprise groups in our country, including systemic risk, industry integration risk, financial leverage risk, and the corresponding preventive measures.