Analysis Of The Combination Of Production And Finance In Enterprises And Its Effects

Under the current institutional background of the country and the support and incentive of relevant policies,many enterprises have participated in the activities of industry-financing combination,and with the continuous development of industryfinancing combination,it has been recognized by many enterprises as a scientific mode of enterprise development.More and more real enterprises hope to use the combination of industry and finance to achieve such goals as diversified development,alleviating financing constraints and enhancing capital operation capacity,but the overall combination of industry and finance in China is at a preliminary stage,and many real enterprises lack experience in entering the financial field and are unable to bring the effect of the combination of industry and finance into play.It has both theoretical and practical significance.This paper takes China Shenhua as the object of study.Firstly,based on the relevant theories and literature review on the combination of production and finance,it summarises the motives of the case company’s combination of production and finance and analyses its mode of combination of production and finance by sorting out its business situation and the background of its industry;secondly,it analyses the economic effects of the combination of production and finance from the dimensions of traditional financial performance,capital operation,operating performance and market response;finally,it draws the following conclusions.(1)the combination of production and finance has improved the business performance of enterprises and is conducive to their long-term development;(2)the combination of production and finance has promoted the transformation and upgrading of enterprises;(3)the formation of an internal capital market is the main reason for the effectiveness of the combination of production and finance.While most scholars adopt an empirical approach to analyse the models and effects of the integration of production and finance,this paper applies the theoretical basis to specific cases,analyses China Shenhua’s model of integration of production and finance,and explores its economic effects from four different perspectives to build a complete research system on the integration of production and finance,enriching the specific application of the integration of production and finance at the micro level of enterprises and promoting the implementation of the integration of production and finance.