| Since1980s, the Western developed countries conducted a series of major adjustments about the financial management system and financial system, the United States started to relax the financial control and developed to the financial liberalization step-by-step from1980s, so financial mixed operation gradually prevailed.Compatible with all these changes, the financial-industrial integration has been obtained a rapid development, investment banks and various types of investment funds became the main body of the financial-industrial integration, the boundaries between financial firms and non-financial enterprises has become blurred. In the1990s, the United States companies set off the fifth wave of mergers and acquisitions, many companies abandoned the diversification, concentrated on its main business, and started to refocusing management. But as the inherent requirements for the capital profit motive, as well as some companies to maintain a strong position and competitive strength by the combination, the financial-industrial integration still prevalent in America companies. Most large companies operating in general have five characteristics, just as multinational operations,the scale of operation, standardized operation, financial-industrial integration and diversified, in which financial-industrial integration characteristic has become increasingly significant. Under the impact of the2008financial crisis, some financial-industrial integration companies in US suffered heavy losses, some companies began to evacuate the financial sector and return to main business. The validity of the integration of industry with financial and the risk to companies and the entire financial system has aroused extensive attention.In our country, financial-industrial integration has become the popular development pattern of the enterprise groups in recent years, along with enterprise group’s growth, many large industrial groups with strong financial strength, either set up financial companies, or reprimanded the large amount of fund to inrush the financial sector, holding the share or initiating the banks, securities companies, the fund companies, insurance companies, trust companies, the stock companies, the finance rents companies and so on, in order to realize the industrial capital and the financial capital integration in the enterprise groups. Our large enterprise groups full of confidence, eager to try with financial-industrial integration. At present, China’s financial-industrial integration of enterprise groups appear many characteristics as the central State-owned enterprises playing a leading role, the main item enterprises striving to be the first. Some central State-owned enterprises such as CNPC、State grid corporation COFCO、AVIC、Baosteel are competing to expand their own financial territory. At the same time, some Private enterprises are also striving for the financial license, such as New Hope Group, Lenovo, Haier Group, Younger, and so on. Industry authorities and financial supervising and managing organization appear different attitude, from2009, the State-owned Assets Supervision&Administration Commission (SASAC) clearly support for financial-industrial integration,they think that the central State-owned enterprises can cultivate the international competitive power and achieve the sustainable development by financial-industrial integration. The Central Bank has been closely monitoring the financial risk associated with financial-industrial integration, and researched these topics seriously in2010; The China Banking Regulatory Commission don’t support financial-industrial integration fully, they hope establishing the organ effective firewall between the industrial capital and the financial capital, to guard against the risk. The academic circles expressed their concerns over the risk of enterprises produced by financial-industrial integration, the related research also confirmed that financial-industrial integration have the possibility to increase the enterprise risk. Then, our enterprise groups do have good effect? Whether the financial-industrial integration can promote the enterprise’s performance, or increase the enterprise’s risk? This article will provide the answer.This article reads as follows:Chapter1is introduction, including the background, significance of the topic, related theoretical research achievements and limitations, objectives, research methods, framework, as well as the innovation of this article.Chapter2is the theoretical basis of financial-industrial integration, mainly including the resource base theory, diversification management theory, the enterprise growth cycle theory and internal capital market theory, these theories provides the important cornerstone for this article research.Chapter3is the development process, development level and motivation of enterprise’s financial-industrial integration. First of all, it briefly describes the concept of financial-industrial integration and the two ways of the integration, and it takes the industrial enterprise groups as the research objects. Secondly, it summarizes the development course of financial-industrial integration in China, in particular, our research introduce the history of our country’s financial-industrial integration, then sum up the stage of development and the development characteristics of our enterprise group’s financial-industrial integration.Thirdly, we divides financial-industrial integration of enterprise groups into3development levels, the primary stage, the Industrial capital and financial capital integrate directly; the intermediate stage, the industrial capital and financial capital integrate indirectly; the advanced stage, the industrial capital and financial capital integrate effectually. Then, we clearly point out that financial-industrial integration of our enterprise groups is engaged in the primary development level. Finally, it takes a detailed analysis of the motivation of the enterprise group’s financial-industrial integration development, mainly including the pursuit of diversification, seeking new profit growth points; services to the Group’s main business, achieving effective collaboration of industry and financial; easing the financing constraints, saving the cost of financing; improving the group’s financial functions, enhancing the efficiency of the use of funds.Chapter4is the judgment standard about the validity of enterprise groups financial-industrial integration. This chapter points out judgment standard about financial-industrial integration validity of our enterprise groups which should be viewed from four aspects:after financial-industrial integration, enterprise performance is improved, the groups obtain the convenience of financing, the group’s financial business revenue is enhanced, and the enterprise risk is reduced or can be controlled.Chapter5is the empirical test about the effect of our enterprise group’s financial-industrial integration. This article selects for non-financial companies that holding the share of one or many financial institutions in2006-2010as the research sample, and chooses return on net assets total return on assets, rate of return on invested capital, and earnings per share as a performance assessment index, and picks Altman Z value, asset-liability ratio, interest rate safeguard multiplier, cash ratio, as well as financial leverage as a risk assessment index, to analyze effect of our enterprise group’s financial-industrial integration. The result is that, in the sample period the performance of the sample companies has not been improved significantly, and from the risk perspective, the sample companies’risk has been changed but not significantly, but the company’s risk is still controlled. So the effect of our enterprise group’s financial-industrial integration is not well.Chapter6is the summaries about the factors that impacting validity of financial-industrial integration of enterprise groups. External policy environment factors include:access policy of the finance supervision and management department, the effective regulation of the finance supervision and management department and the policy implications of SASAC. And the main influence factors of enterprise level include:the ownership of the enterprises, the types of financial institutions that the industrial enterprises holding the shares, and the share ratio of financial institutions by industrial enterprises. This chapter shows that the empirical research result, as the effect of financial-industrial integration state-owned enterprises are not significantly better than the private enterprise. Also, this chapter confirms that holding different types of financial institution’s share generally has little effect on enterprise performance, but has uncertain impact on enterprise risk. The share of financial institutions that held by industrial enterprises does not affect enterprise performance, but increase the enterprise riskChapter7is the introduction of the risk which the financial-industrial integration enterprise groups possibly faced as the degree of integration raising. The risk include that industrial capital and financial capital cannot effectively coordinate together, using the financial superiority to blind expansion, the lacking of related law and the supervising and management and the potential risk which brings to the society.Chapter8is the related proposal that can enhance the validity of the financial-industrial integration. From enterprise perspective, taking the main business as the center to achieve effective cooperation of industry and finance, maintaining a balanced development of industrial and financial development, and focusing on the financial sector balances. From the government supervising and managing level, the legislature should be actively developing and refining laws involving financial-industrial integration from market access to exit, and gradually forming a relatively complete system of laws and regulations. As the legal and regulations perfected and financial holding company established, unified supervising and managing framework should be gradually formed in the future.Chapter9is the conclusions, deficiencies and future research directions.This innovation is expected mainly in the following aspects:1. The paper carries out the empirical test about the effect of our enterprise group’s financial-industrial integration. It selects for non-financial companies that holding the share of one or many financial institutions as the research sample, and analyzes these sample companies’change of performance and risk in a specific sample period (2006—2010). According to this study, in the sample period the sample companies’performance has not been improved significantly, and from the risk perspective, the sample companies’risk has been changed but not significantly, but the companies’risk is still controlled. So the effect of our enterprise group’s financial-industrial integration is not well.2. The paper divides financial-industrial integration of our enterprise groups into3development levels. The primary stage, the industrial capital and financial capital integrate directly; the intermediate stage, the industrial capital and financial capital integrate indirectly; the advanced stage, the industrial capital and financial capital integrate effectually. Then, we clearly point out that financial-industrial integration of our enterprise groups is engaged in the primary development level. This paper also indicates judgment standard about financial-industrial integration validity of our enterprise groups.3. The paper summaries about the factors that impacting validity of financial-industrial integration of enterprise groups. This paper summarizes related factors that impacting effect of financial-industrial integration of enterprise groups, from the external policy environment factors and enterprise groups internal factors. External policy environment factors include:access policy of the finance supervision and management department, the effective regulation of the finance supervision and management department and the policy implications of SASAC. And the main influence factors of enterprise level include:the ownership of the enterprises, the types of financial institutions that the industrial enterprises holding the shares, and the share ratio of financial institutions by industrial enterprises. This study also carries out the Empirical research on the influence factors on the enterprise level.4. This paper proposes the related suggestion from the enterprise and the government supervising and managing stratification plane, in order to achieve the effective integration of industrial capital and financial capital in the enterprise internal. From a enterprise perspective, taking main business as the center to achieve effective cooperation of industry and finance, maintaining a balanced development of industrial and financial development, and focusing on the financial sector balances. From the government supervising and managing level, the legislature should be actively developing and refining laws involving financial-industrial integration, as the legal and regulations perfected and financial holding company established, unified supervising and managing framework should be gradually formed in the future. |
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