Research On The Influence Of Regional Financial Deepening On The Combination Of Industry And Finance Of Listed Companies

Under the background of relaxing financial industry access and opening up to the outside world,China has emerged a large number of enterprises entering the financial market.In addition to the common investment in financial wealth management products,the combination of industry and finance is becoming more and more common.At present,China's financial system reform is becoming more open,and the government encourages private capital to enter the financial industry.In order to expand the scale of physical enterprise capital,financial institutions have deepened their integration of industry and finance in order to obtain financial institutions with high profits in the financial sector.From 2006 to 2014,the scale of equity investment of financial institutions in China's listed companies has grown rapidly,and the combination of industry and finance has experienced explosive growth.Since 2015,due to the introduction of regulatory policies by the national government,the investment ratio is limited,and the number of listed companies in the industry and finance has decreased.However,there is still an upward trend,especially the combination of production and financing of listed companies holding non-listed financial institutions,which is further encouraged by policy encouragement.Because these financial institutions are not listed on the A-shares,the operation and profitability are not clear,and the combination of industry and finance has great opacity.The resulting connected transactions are highly risky,which will aggravate the risks of the financial market to a certain extent.In turn,it affects China's economic development.Therefore,while the combination of industry and finance forms benefits,it must also guard against the risks it may cause.In this context,this paper chooses to conduct in-depth research on listed companies' non-listed financial institutions,and explores the impact of financial environment development on the implementation of industry-industry integration.Does financial deepening affect the company's integration of industry and finance,and whether also has an impact on the degree of the integration?Through empirical research,this paper finds that financial deepening can reduce the regional financing constraints and reduce the motives of enterprise integration and integration;the internal control quality,firm size and CEO financial background of regional financial The deepening of the regulatory effect,the regional financial deepening to reduce the combination of industry and finance,the internal control mechanism is imperfect,the company is small,and the CEO does not have a financial background.Based on this conclusion,China should speed up the financial deepening work,better serve such enterprises,and thus reduce the risk of integration of enterprises and industries.In the sample of listed companies that have implemented the combination of industry and finance,it is found that the improvement of regional financial deepening can promote the deepening of the integration of industry and finance,and thus improve the investment efficiency of the combination of industry and finance.The effect of internal control quality and enterprise scale on regional financial deepening has a regulatory effect,while the regulatory effect of CEO financial background is not significant.The research results also show that private enterprises with small scale and imperfect internal control system are more likely to increase the proportion of investment in financial institutions.This conclusion suggests that China should strengthen the supervision of the integration of industry and finance for small and medium-sized private enterprises.This paper supplements the research results of China's domestic integration and formation conditions,enriches the empirical research in this field,and explores the impact of regional financial deepening on the integration of industry and finance,and attempts to construct the mechanism of the financial environment's integration of industry and finance..Based on the external environment of financial deepening,this paper explores the impact of financial deepening on the possibility of integration of industry and finance,the degree of integration of industry and finance,and the adjustment effect of individual characteristics of enterprises on regional financial deepening.By studying the sample of non-financial listed companies holding non-listed financial institutions,it helps the government to better supervise the behavior of entityholding financial institutions,providing enterprise-level support for financial deepening reform,and also for listed companies.The combination of industry and finance provides theoretical and empirical references.