A Study On The Performance Of Financial-industrial Integration Based On Chinese Listed Companies

With the growing of enterprise group in our country, more and more enterprises try to get involved in financial institutions through the establishment of large sums of money or financial companies, taking a stake in or holding institutions such as banks, securities, insurance, in order to realize own industrial capital and financial capital integration. The emotion of integration in Chinese enterprises group is rising well. At present, the situation of the integration is that the central enterprises as the leading, and the private enterprises are actively participating in the combination of enterprise features. Through the combination mode, some enterprises achieve the improved profit growth and development patterns, it has created Haier, CITIC group, LuNeng group and other large enterprises. But the negative effects cannot be ignored, the collapses of Delong and some other enterprises are indeed because of the industry and finance combination strategy.This paper first explains the concept and motivation of the Financial-industrial integration. Secondly, it introduces the mechanism about how the integration works on the performance of listed companies. While the objective of Financial-industrial integration is to seek synergy to achieve the long-term development strategy, the implication of development is also worth for us to ponder over. Thirdly, this paper make a date selection of nearly 2000 listed companies from 2007 to 2014, and use 14 financial indexes to calculate the value of the comprehensive performance of the listed company by factor analysis method, and then test the effects of Financial-industrial integration to the enterprise performance through the multiple regression method. After dividing the type of financial institution, the nature of ownership of listed companies and implement time of the combination, the paper verifies the effects of different conditions on the operating performance of the listed corporation respectively. The results showed that the combination of the listed corporation's performance did not bring positive effects. Holding securities and insurance shares will have a significant positive effect; the nature of state-owned enterprises' performance was not higher than that of the private enterprises; Financial-industrial integration will bring significant negative effects in the short term.Finally, this paper puts forward the corresponding policy recommendations:enterprises should make clear the objective of the combination and develop effective combination mechanism.The government should foster a developed capital market and improve relevant laws and regulations.