Research On The Motivation And Performance Of Vertical Integration Of Coal Enterprises

As an important energy source for national construction,coal resources have an irreplaceable resource status.Its capacity,price and many other factors have inestimable significance to economic growth and industrial manufacturing.In recent years,the government has ceased the production of some small coal mines and vigorously encouraged the production and operation of large and medium-sized coal enterprises.It can be seen that the existing vertical integration industries of the coal industry are mainly electric power,coal oil,chemical industry,electrolytic aluminum,railway and shipping industry,and continue to deepen the vertical integration.Based on this background,this article will study the vertical integration motivation of coal enterprises.This paper reviews the previous studies on the motivation theory of vertical integration by summarizing new classical economics,industrial organization theory and transaction cost theory.At the same time,this paper also summarizes the results of empirical research on vertical integration motivation of existing coal enterprises.It is found that most vertical integration drivers are to reduce transaction costs.In this paper,this view is more one-sided.Therefore,this study analyzes the formation mechanism and performance of the vertical integration of Chinese coal enterprises in combination with the theory of transaction cost,the dual pricing theory and the expansion and extension of the double pricing model.Through mathematical deduction,case studies and empirical studies,we draw some new conclusions.This paper argues that coal enterprises will deepen the verticalintegration level when transaction costs,technical efficiency and government intervention are relatively high.For the market uncertainty test,it is found that the test results are not significant.At the same time,this paper also studies the relationship between vertical integration and enterprise performance,and finds that the degree of vertical integration is positive to the performance of the enterprise,which shows that the deepening of the degree of vertical integration will help to increase the performance of the enterprise.This paper argues that enterprises should rely on their own advantages to develop vertical integration,fully coordinate resources,and reduce production and operating costs and market risks.At the same time,we should also pay attention to the introduction of technology in all aspects of production and operation.For the government,we should actively guide the development of vertical integration and establish a sound market exit mechanism.