China’s Coal Enterprises Forward Integration And Performance

The coal industry is a resource-intensive industries, the development of the coal industry can not be separated from the good functioning of the upstream and downstream industries, coal enterprises and downstream enterprises vertical relationship between governance is an important factor to affect the healthy development of.The combing exposition of the existing literature and classics vertical relationship of the enterprise, that the existing literature has constructed an analytical framework, and highlights the transaction cost theory, first from the connotation and extension of two angles transaction costs concept, and from human factors, factors associated with a particular transaction and transaction market environment factors explain the transaction costs is determined that the transaction cost theory can be a good analysis of the vertical relationship of the coal enterprises and downstream enterprises. This paper argues that the coal industry before the integration of the main motivation is to stabilize the downstream product sales and market forces. Secondly, this paper studied the coal industry forward integration affect its performance. This part of the elaborate two aspects, first from the theoretical analysis of the coal industry prior to the integration of their performance impact mechanism, this paper considers the coal industry forward integration can reduce costs, increase profits and innovation ability. Theoretical analysis, to the degree of integration before the coal enterprises is estimated that the separation of major method to calculate the forward integration index, excluding non-recurring gains and losses, net assets yield explanatory variables previously integration index, total assets, asset-liability ratio, the net asset turnover as an explanatory variable for the empirical analysis. The empirical results show that, prior to the integration of coal enterprises can improve business performance level, this conclusion is consistent with the theoretical analysis.The theoretical analysis and empirical analysis to the integration of coal enterprises can improve the level of corporate performance, Chapter VI of the policy recommendations, the government and enterprises should be three aspects to enhance the level of integration in the promotion of China’s coal industry before:give full play the role of the market mechanism in the optimization of industrial structure; promote the merger and reorganization of the coal industry in the country; participate in international competition to promote deep processing of coal technological progress.