The Influence Factors Research Of Equity Type Financial-Industrial Integration Financial Risk For China’s Private Listed Enterprises

Financial-industrial integration refers to integrating the industrial capital into financial capital to develop. Compared with the state-owned enterprises, private enterprises have stronger motivation to implement financial industrial integration because of the relative disadvantage in obtaining financial capital. Recently, private enterprises speed up this integration, and the equity-type financial-industrial integration is the main model. Equity-type financial-industrial integration takes involved (controllable) shares as the main form, and the equity bridges industry and finance. At present, the financial-industrial integration of private enterprises in our country is mainly initiated from industrial sectors, and then penetrated into financial sectors through the form of involved (controllable) shares that is equity type financial-industrial integration model. The risks of financial-industrial integration cannot be ignored, especially the financial risk, which is the vital factor that influences the effectiveness of financial-industrial integration. Therefore, it is urging to focus on the influencing factors of financial risks of equity-type financial-industrial integration and to provide advices for private enterprises in the process of integrating finance into industry.First, based on literature review, this study summarized the type of equity-type financial-industrial integration, including:reward risk caused by ignoring main business and blindly borrowing speculative investment; financial leverage risk caused by excessive financial leverage resulting in repeated computation of capital; internal connection transaction risk caused by insider control; solvency risk caused by complicated organization structure resulting in capital chain rupture, etc. Moreover, this paper concluded the type of the influence factors of financial risk of equity type financial-industrial integration, mainly including:the external environment factors, individual enterprise characteristics, the degree of financial-industrial integration, type and amount of financial institutions, the implementation of time and so on. Finally, we used empirical method to testify the influence factors on the financial risk of equity type financial-industrial integration.The study results showed that:(1) External factors. The more government interfere, the higher the financial risk would be.(2) The internal factors. The more the amount and type of financial institutions are, the greater equity type financial-industrial integrated. And the implementation time and the financial risks have great positive relationship. Therefore, we provide advices on preventing from or reducing these financial risks. In addition, initiating from private enterprises practices of financial-industrial integration, this paper focused on equity type financial-industrial integration. We constructed the model to measure the financial risks of equity type financial-industrial integration, and integrated Wilcoxon rank test, regression analysis methods to analyzing financial factors. Thus our research perspectives and research methods are innovative. Finally, we described the research limitations and future research.