Effects Of The Combination Of Industry And Finance Capital On Enterprises' Value In View Of Capital Circulation

The enterprises that based on industry ever growing and developing in the future development,but,enterprises should expand the production,enhance competitiveness and solve the question of finance as competition heats up.In order to internalize the similar functions of financial institutions,the enterprises participate in the financial industry in some way of non-banking financial institutions,like investing in financial institutions and establishing financial companies.In this process,some enterprises achieve the financial synergies and realize a large investment which returns to add the worth of enterprise,but some enterprises ignore the potential risks what leads to the capital lack and results in bankruptcy of the whole enterprise group ultimately.Therefore,it is precisely because of the two sides of dialectics that the integration of industry-financial capital(IIFC)not only has a positive impact on enterprises but also brings a negative impact.So in the process of IIFC,the enterprises themselves should implement the financial risk control and achieve synergy of financial capital and industrial capital,as far as possible to reduce the negative effect of IIFC.Only in this way the enterprises would maintain the steady and sustainable development instead of enterprises and not only pursuing short-term profit growth.First of all,the paper considers three issues as a starting point of capital circulation:what are the paths of integration of industry and financial?Is there any difference in the motivation of enterprises to choose different integration paths?How do different paths affect the value of the enterprise?In the process of IIFC,the factors such as investment structure,financing channels and financial risk would affect enterprise value,and then this paper summarizes the theory framework of the impacting mechanism between IIFC and enterprise value.With the different life cycles,enterprises may choose their own strategies for certain purposes,which leads to select diverse routes for the combination between industry and finance.First,with the basis of joint stock or financial enterprises,it's a way to change the frames of internal investment to win the interests for adding value.How the combination between industry and finance to make the increase of the enterprise value and what the differences between various ways among certain progress are both worth studying,furthermore,the final influence of the value is also a exploration.It is typical for us to study the combination between industry and finance of Newhope.So the survey will be very meaningful to those who are trying to combine the industry and finance.