Research On Enterprise Financial Synergy In Industrial Chain Integration

With the deepening of economic globalization,more and more enterprises choose to adopt the strategy of industrial chain integration in the face of increasingly fierce competition.However,the integration of the industrial chain is a double-edged sword,if the use of improper not only can not improve the competitiveness of the company,but also may bring certain operational risks to the enterprise,so it is very important to evaluate the effect of industrial chain integration.Financial synergies are often used to evaluate the financial benefits of enterprises after mergers and acquisitions,and this paper takes this as an entry point to believe that one of the purposes of industrial chain integration is to produce financial synergies.Based on this,the article selects Oriental Yuhong,which has become a leading enterprise in the industry through industrial chain integration in China’s waterproof building materials industry,as a case study company,in order to study the financial synergy effect in the integration of the industrial chain in a more in-depth manner.Based on the theory of resource dependence,industrial organization and transaction cost,this paper adopts the literature review method,comparative analysis method and case analysis method,and selects Oriental Yuhong as a research case to evaluate its financial synergy effect in the integration of industrial chain.The article first expounds the background and significance of the research,sorts out the relevant literature of industrial chain integration and financial synergy,explains the concepts and theories involved in the article,and lays a solid theoretical foundation for follow-up research.After a brief introduction to the situation of Oriental Yuhong,the motives for integration,and the process of integration,the mechanism and path of the industrial chain integration affecting financial synergy are deeply analyzed.Then,in order to evaluate the integration effect of the Oriental Yuhong industrial chain,the financial synergy evaluation model of the industrial chain integration is constructed from six dimensions according to the performance of the financial synergy effect,and the entropy-TOPSIS method is used to evaluate the comprehensive indicators and first-level indicators of the financial synergy effect horizontally and vertically.According to the evaluation results,the integration of the Oriental Yuhong industrial chain has brought positive financial synergies to it and at the same time brought negative financial synergies.Finally,the paper analyzes the reasons for the negative financial synergy effect brought by the integration of the Oriental Yuhong industrial chain and proposes solutions to the problems.The study found that:(1)The integration of the industrial chain can bring positive financial synergies to enterprises.The integration of the industrial chain can optimize the allocation of resources,reduce transaction costs,and improve the ability to innovate and affect financial synergies.(2)Industrial chain integration can also bring negative financial synergies to enterprises.The integration of the industrial chain involves many links,which is easy to bring financial risks to enterprises,and special attention should be paid to risk prevention in the process of integration.(3)Enterprises can choose the correct development strategy according to the external environment and their own needs.Industrial chain integration is a double-edged sword,and enterprises need to correctly choose the transformation strategy according to their own environment.