Regulation Legitimacy, Vertical Integration And Enterprise Value

In recent years, along with the development of the coal industry policy, many coal enterprises have embarked on the path of vertical integration, but many companies did not enhance the enterprise value because of the implementation of the vertical integration strategy. On the contrary, The value of some enterprises even has been lost after adopting vertical integration behavior. Therefore, this paper attempts to explore the institutional reason of this phenomenon from social institutional theory, in order to provide reference for the research of related issues.This paper takes the coal enterprise vertical integration as the breakthrough point, combs and summarizes the existing literature and classical bibliography of the vertical integration and social institutional theory. And according to the related theory and the realistic situation, chooses the level of enterprise as the response variable of the government regulation legitimacy pressure, takes 35 listed companies obtained through screening as research samples, does empirical analysis for 2008-2014 data of China’s coal industry listed corporation, discussed in the interference of the government regulation legitimacy pressure, coal enterprise vertical integration behavior impact on enterprises value.According to the result of empirical test, this paper got the conclusion as follows:(1) The relationship between the vertical integration degree and the enterprise value of the coal type enterprise in the sample has the inverted U type trend. (2) The greater influence of the regulation legitimacy pressure on corporate, corporate’s vertical integration behavior is more likely to weaken the enterprise value; The smaller influence of the regulation legitimacy pressure on corporate, corporate’s vertical integration behavior more conducive to the promotion of enterprise value. Finally, based on the empirical results, this paper puts forward some suggestions for the future development of China’s coal industry enterprises from two angles of government and enterprises, and makes some prospect for related research.