Empirical Studies On Institutional Environment,industrial-financial Integration And Enterprise Operation Risk

As an important way for enterprises to become diversification and globalization,the healthy development of industrial-financial integration has been paid much attention to by theory and practice.In 2015,the plan of "Internet +" pointed that “we need to accelerate the combination of mobile Internet,cloud computing,big data,networking and modern manufacturing,promote the healthy development of Internet banking”.Internet finance and supply chain finance opened a new chapter in the development of ndustrial-financial integration.Chinese Manufacturing 2025 also emphasized that inorder to realize the dream of a powerful manufacturing,we must deepen the reform of the financial market,support the manufacturing enterprise group implement industrial-financial integration,widen the financing channel and reduce financing cost.With the promotion of national policy,industrial-financial integration in China is entering a stage of rapid development.In the From 8 years from 2007 to 2014,there have been 1255 cases of the integration in Shanghai and Shenzhen stock exchanges.By December 31 2014,there are 581 A-share listed companies to implement 850 cases of industrial-financial integration,each company shares 1.5 financial institutions.The companies of integration accounted for 22.23% of the total companies in Shanghai and Shenzhen.However,the practice at home and abroad tells us that industrial-financial integration has two sides,synergy benefits and risk."Delong Crisis" is a typical case integration failure in China.Whether the industrial-financial integration will bring risks to the daily operation of enterprises? What is the impact of institutional environment on the risk? Is there any difference in the risk of the integration of different characteristics(the proportion of shares,duration and types of financial enterprises)? What are the reasons leading to the exit of the industrial-financial integration? These have become unavoidable problems in the the development of the integration.Paper will solove these problems from the perspective of theoretical and empirical analysis,and research the the relationship of institutional environment,industrial-financial integration and enterprise operation risk.First,the paper reviews the domestic and foreign literature on industrial-financial integration,including the theoretical basis and motivation,economic effects and influencing factors,as well as risks.Foreign scholars on the study of integration started earlier,but the theoretical framework and research methods are not suitable for the institutional environment in our country.The domestic research just unfolding,the focus of these researches is theoretical analysis,not empirical analysis,and the focus if these empirical studies is the economic effects of industrial-financial integration,not the risk,especially for the differences in the risk of the integration of different characteristics.Particularly,there are hardly any researchs for the exit of integration and its influence factors.In addition,most of the domestic scholars conisder the companies are in the same institutional environment,they rarely research the impact of environmental factors on the risk of the industrial-financial integration.Secondly,the thesis introduces the volatility of cash flow to measure the enterprise operation risk which is brought by the industrial-financial integration.The integration can ease the financing constraints faced by enterprises,broaden the financing channels of financing.In some cases,the lack of effective supervision mechanism may cause the managers to use the funds to meet their private benefits of control,which can result in excessive investment and opportunism problem.Once the financing channels is tightened or the investment can not get the expected return,managers will misuse or misappropriation the cash of the main business to make up for the loss of investment or meet one's liabilities.This will cause the fracture of the cash chain and the high volatility of operating cash flow.Paper selected 1301 listed companies of 2008~2014 which implement the industrial-financial integration as the treated sample,the un-treated sample is matched by the total assets of the parent company,year,duration and industry one by one.Through empirical analysis,paper found that the the volatility of operating cash flow of treated companies is bigger than the un-treated companies,which means industrial-financial integration will aggravate the enterprises operation risk.Paper also found that when the locality of aompnies has the higher marketing process,less government intervention and the higher financial liberalization,the enterprises operation risk caused by industrial-financial integration will be reduced,especially for the financial liberalization.Thirdly,the paper discussed the differences in the risk of the integration of different characteristics.Based on the listed companies implementing industrial-financial integration in year 2008~2014,research found that when the equity ratio in financial enterprises is lower than 10%,the coefficient coefficient of shareholding ratio and the risk is positive and significant,in other words,the higher ratio the more risk will be.With the increase of shareholding,the coefficient is still positive but not significant,the risk of the integration brought to the enterprise has been alleviated.When the shareholding ratio is higher than 40%,he coefficient coefficient of ratio and the risk is negative and significant,namely the higher ratio,the higher the less risk will be.Study also found that the coefficient between duration and enterprise operation risk is negative,that is,the longer the year the more the risk of the combination of industry and finance can be alleviated.In addition,regression model also showed different characteristics in tifferent types of financial enterprises.In case of low proportion(less than 10%),the regression coefficient of insurance company is positive and largest,namely the shareholding proportion is higher,the greatest the risk will be.In case of of high proportion(more than 10%),the regression coefficient of insurance company is negative and smallest,namely the shareholding proportion is higher,the smallest the risk will be.Finally,the paper discusses the exit of industrial-financial integration and its influencing factors.ased on the sam sample of industrial-financial integration in year 2008~2014,paper found that there are 674 cases of integration entering and 361 cases of integration exit in the past 6 years,the exit sample is accounted for a high proportion of 53.56% of entering events.By the use of Logistic regression analysis,paper pointed that when the corporate earnings per share is lower,asset liability ratio is lower,coordination cost rate is higher,the duration is small,namely when the corporate profitability,solvency is poor,and the synergistic effect is inefficient,companies are more likely choose to withdraw from the integration.As a hot investment strategy of enterprises,industrial-financial integration called a lot of attention.It can help enterprises to establish a good relationship with the financial structure,ease financing constraints,reduce the information asymmetry,transaction cost and obtain the synergistic effect.But we should know the integration can also bring risks to the company's daily operations,resulting in significant fluctuations in operating cash flow.Through the study of the situation of listed companies in China,we found that the risk of industrial-financial integration has the upper hand in practice.The plane of "Internet+","manufacturing power" and a series of related policies promulgated by government will actively promote and accelerate the integration process.In this situation,enterprises should make their integration decisions cautiously and avoid blindly follow the trend.If enterprises see the integration as a strateg of enterprise,improve the equity ratio and duration,select the appropriate financial structure,the risk can be reduced.This paper takes the risk of industrial-financial integration as the starting point,studies the relationship in the institutional environment,industrial-financial integration and enterprise risk.This research can supplement and enriches the research in this field.The conclusion of the paper can help enterprises aware that the combination is a "double-edged sword",they should establish and improve the supervision mechanism to strengthen the prevention of the integration risk.The conclusion can also help countries to further improve the institution environment and the supervision system,promote the implement of related policies and accelerate the healthy development of intgration.In the situation that the industrial-financial integration is about to enter a more rapid development stage,it has positive practical significance to pay attention to the institutional environment,industrial-financial integration and enterprise operation risk.