The Influence Of Coal Enterprises Forward Integration Strategy On The Business Performance

Coal resources as an important energy resource,its reasonable sustainable development is beneficial to the people's livelihood.As a direct developer of coal resources,whether coal enterprises can develop better and reasonable explore the coal resources play a crucial role,at the same time,the coal enterprises need to handle the relationship with downstream enterprises.The paper induced the related contents of enterprise integration from classics and literature,then I found it has a complete analysis framework,so this paper stated enterprise integration based on transaction cost theory,the use of transaction cost theory can better explain the transaction relationship between coal enterprises and downstream production enterprises,and thus based on inherent pursuit of interest and external forces to promote build the analysis framework to analyze the motivations of vertical integration of Chinese coal enterprises.The third chapter described the status quo of modern coal enterprises to carry forward integration,the fourth chapter researched on the motivation of coal industry prior to the integration,combined with the development status of coal industry,the ultimate purpose of business is to achieve its maximum self-value,and the value of the enterprise includes profitability,growth and risky,thus the motivation of the three elements become the basic motivation of enterprise integration strategy,based on the profit motivation and growth motivation,taking into account the national policy,under the premise of the three major macro aspects,explain the motivation from internal and external environment.Secondly,this paper studied the influence of coal enterprises forward integration on the business performance.This paper started from the theoretical level to analyze whether influenced and produce what kind of influence.This paper argued that the coal industry forward integration can by maintaining the product sales volume and sales channels,diluting enterprise production operation cost,improving the strength of enterprises,and promoting enterprises to carry out technology innovation to influence enterprise performance.After theoretical analysis,this paper empirical analyzed the relationship between forward integration and enterprise performance.First of all,using the Davies-Morris index method calculated the degree of forward integration,total assets rate as explanatory variables,forward integration index as explanatory variables,for good,excluding other factors influence,asset size,asset liability ratio and total assets turnover rate as control variables.By using the regression method,we can see that the forwardintegration of coal enterprises is positively related to enterprise performance.Based on the conclusions of theoretical and empirical analysis,the seventh chapter proposed the policy recommendations about promoting the coal forward integration,that is,the expansion of mergers and acquisitions of coal enterprises in the country;coal enterprises go abroad actively,compete with international advanced large-scale enterprises,in the competition actively introduce advanced technology and strengthen technological transformation absorption and independent innovation,and realize the deep processing technology.At last,the paper summarized the research conclusion and put forward the limitations.