Impact Of Industry-Finance Integration On Corporate Financing

In recent years,with the rapid development of the capital market and the gradual reduction of barriers to entry in the financial industry,more and more enterprises expect to realize their financial industry layout by holding or controlling financial enterprises.Through this method to help enterprises develop,realize capital appreciation and alleviate the financing problems.Under the background that the country has successively introduced policies to encourage the deep integration of the two types of capital,the industry-finance integration has shown good development prospects.However,due to the imperfect development of China's financial market,research on industry-finance integration has lagged behind,and most of the research on industry-finance integration of corporate financing remains in empirical research.Guidance recommendations that can be directly used by physical enterprises are relatively limited.Therefore,it is necessary to combine with the actual cases to explore the motivation of industry-finance integration and the specific performance of the impact on corporate financing.This will help to further expand and deepen the existing theoretical system of industry-finance integration,promote the healthy and orderly development and provide useful supplements for enterprises to provide practical guidance.This article starts with the background of industrial capital holding financial companies and adopts research methods such as literature induction and case analysis.The basic concepts,modes,driving factors of industry-finance integration and the impact of industry-finance integration on corporate financing are summarized through induction.By analyzing the driving factors of industry-finance integration,the four specific effects and related mechanisms of corporate financing during industry-finance integration are summarized,so as to provide a theoretical basis for enterprises to choose industry-finance integration to ease financing constraints and solve difficult financing problems.Through the introduction of the case of Xinhu Zhongbao's industry-finance integration,the basic situation of industrial capital and financial capital in the process of industry-finance integration are separately explained.Learned that Xinhu Zhongbao has gone through many stages of overseas acquisitions,entered the bank's board of directors and once again increased its shareholding in bank shares that successfully participated in the CITIC.Based on the industry background of Xinhu Zhongbao and its influence factors such as difficult financing problem,after a detailed analysis of the motivation of Xinhu Zhongbao's participationin CITIC Bank.Then the impact of industry-finance integration of Xinhu Zhongbao on corporate financing constraints,financing structure,financing costs,and financing costs is discussed.Finally,through the previous research content,it summarizes the process of Xinhu Zhongbao's participation in CITIC Bank,draws specific conclusions and puts forward the corresponding case inspirations.This article draws the following conclusions from the case of Xinhu Zhongbao's participation in CITIC Bank's industry-financial integration: First,enterprises can establish a close relationship with financial institutions through industrial-financial integration to ease the financing constraints faced by enterprises.Second,industry-finance integration can indeed increase the availability of bank loans and bring financing convenience for enterprises to obtain larger-scale debt financing.Third,industry-finance integration is conducive to obtaining financing concessions.Under the dual role of bank credit financing concessions and the optimization of the company's own financing structure,corporate debt financing costs have been reduced.Fourth,industry-finance integration has opened up financing channels for corporate funds.If companies do not have clear development goals and strategic plans,there will be blind expansion,a sharp increase in debt scale,increased debt repayment pressure and hidden huge debt financing risks.Finally,this article puts forward the following suggestions: The government should further improve the system of industry-finance integration to promote standardized operation of industry-finance integration;the government should encourage qualified entities to participate in banks to achieve industry-finance integration;companies should utilize industry-finance integration to optimize their financing structure and reduce financing cost;enterprises should clarify the "two sides" of the industry-finance integration and pay attention to preventing the risks brought by the industry-finance integration.At present,domestic and foreign research mainly focuses on the internal characteristics of enterprises that affect corporate financing,such as their size,operating performance,and enterprise property rights.Based on the current institutional background of China,the specific impact of the industry-finance integration on corporate finance is mostly empirical research.There are few actual cases that explored the internal driving factors of the industry-finance integration and the specific impact on corporate financing.The research in this article examines the impact of industry-finance integration on Xinhu Zhongbao's participation in CITIC Bank on the financing dilemma facing the company,and helps people to understandindustry-finance integration,especially through equity participation in banks.The mechanism of the impact on corporate financing and the consequences it provides will provide theoretical guidance for the further improvement of the guiding policy for industry-finance integration in the future.Giving full play to the advantages of industry-finance integration to easing the financing dilemma facing enterprises.The research perspective of factors affecting financing has enriched the existing literature and it is a useful supplement to related research.