Study On The Integration Of Industry And Finance In Chinese Private Enterprise

The integration of industry and finance is an inevitable product by the development of the market economy, it is the strategic choice that can promote the enterprise's competitive power, and it refers to the integration of industrial capital and financial capital, what describes an economic process. The integration of industry and finance happened in the mid-19th century, in the first enterprise annexation wave in western countries, the developed nation's industrial capital and financial capital started to have the integration tendency. It can reduce the risk of the information asymmetry and the transaction cost, and it can also raise the capital efficiency and the production efficiency, thus, optimize allocation of economic resources.Now more than 80% of the world's TOP 500 have successfully carried out the policy of integration of industry and finance. The world's economics pattern becomes big company and big group, under the background of economic globalization, along with the development of our country's economy, the private enterprise traditional model is not suitable for the time's need, and large quantities of private enterprises carry out the policy of integration of industry and finance. However, the time our country's enterprises have carried out the policy is just about 20 years, fundamental research is very poor; moreover, our country enterprise's market environment is special, both the production market's growth and the capital market's growth is unbalanced; in August 2004, De Long group bankrupted, and that alarm the companies that have already carried out or prepared to carry out the policy. Therefore do the research in the integration of industrial capital and financial capital that based on own feature is especially important.This research is meaningful when the enterprise takes integration of industrial and financial policy, and it can enhance the management achievements. It is also very useful for the related government department making policy. The organization and individual investor can use it when take the investment. In addition, the state-owned companies can also use the result.Based on the related document study, this paper describe the birth and development of the integration of industry and finance in our country, analyze the situation and the risk of private enterprise and propose that our country's private enterprise direction is developing the financial company, then explain that why choose it as the direction of future. Then this paper chooses the companies in A stock market as sample, and based on 12 variables(6 factors: growth ability, profit ability, the credit capacity, business ability, shareholder getting profit ability, cash flow ability) to weight enterprise achievements, collect 2004～2007's value, calculated the company's achievements by the factor analysis. Then use Wilcoxon test to check whether the integration of industrial capital and financial capital can affect the private enterprise's performance. Then take the achievements as independent, take the integration degree as dependent, and take some control variables to regression. The conclusions are as following: there is an insignificant correlation between integration degree and firm performance.Finally, the article comes to a conclusion for the whole thesis, and takes some opinions and suggestions.