Research On The Efficiency Of Industry And Finance Integration In China

As an important path for modern enterprises to become bigger and stronger,the integration of industry and finance has important significance for transforming the economic growth impetus and upgrading industrial structure,which has been verified in developed countries successfully.Nowadays,the integration of industry and finance in China is still in a one-way stage of industry to finance integration,while the pattern of finance to industry is ready to appear.However,how about the efficiency of the industry and finance integration,how to improve its efficiency,are all urgent problems that need to be solved to achieve steady development of industry and finance integration in China.This article focused on the research of industry and finance integration ef:ficiency,linked theory with practice,started with its development history in China,and analyzed its production stages in detail after the founding of New China.In addition,the measurement,convergence,dynamic evolution and influencing factors of industry and finance integration efficiency were conducted empirical analysis.Combined with the experience of developed countries,relevant countermeasures and suggestions on how to improve the efficiency of industry and finance integration were put forward.The main research content of this article is reflected in the following five aspects.1.Summarize the development history of industry and finance integration.Firstly,compare the characteristics between the two modes of market oriented and bank oriented industry and finance.Secondly,review the four stages development of industry and finance integration in China.2.Measured the efficiency of industry and finance integration in China.Due to institutional restrictions,industry and finance integration in China is just a model of industry to finance.This article used the listed companies participating in financial institutions as samples and added two aspects of considerations by summarizing the previous studies on the efficiency of industry and finance integration:First,Starting from the definition of industry and finance integration,the investment of participating in financial institutions was introduced into the production function of enterprise.Second,industry and finance integration was regarded as event from the dynamic changing considerations of industry and finance integration,defined its survival function,which was introduced into the measurement of industry and finance integration efficiency.3.The measurement results of industry and finance integration efficiency was conducted dynamic evolution analysis.The efficiency of industry and finance integration was analyzed from the two perspectives of absolute convergence and conditional convergence,obtained the results that there is absolute convergence in the primary and tertiary industries,while there is no absolute convergence in the secondary industry,but existing conditional convergence,indicating that under their own conditions,the primary and tertiary industries can reach the steady state level,while the technological change of manufacturing enterprises are relatively fast,so only in the case of differences in their own endowments can they obtain their own steady state level.Secondly,the dynamic evolution of industry and finance integration efficiency was analyzed through the two methods of kernel density function and the Markov chain.The disparity of industry and finance integration efficiency in the industries is expanding and the concentration at the low level is more obvious.4.Constructed the regression model of factors affecting industry and finance integration efficiency.This paper obtained five indicators(financial cash flow,liability level,operational ability,solvency and operating cost)of the financial indicators in the enterprises with industry and finance integration by the principal component analysis.It conducted analysis in detail from the two aspects of the industry classification of shareholding enterprises and the types of participating in financial institutions,obtaining the results that there are industry differences affecting the efficiency of industry and finance integration,and the effect of different risk levels showed by participating in different financial institutions on the efficiency of industry and finance integration.5.Based on empirical analysis,fully learned from the relevant experiences of industry and finance integration in developed countries,the relevant countermeasures and suggestions are proposed from the perspective of building production-oriented integration model of industry and finance,supervision of industry and finance integration,and perfecting the relevant law of industry and finance integration.