The Theoretical And Empirical Analyses Of Vertical Integratior Between The Coal And Electricity Enterprises

Vertical integration is a kind of internal expansion of the enterprises which allows the enterprise to occupy a series of parts along the industry chain,including the forward integration and backward integration.Vertical integration can not only optimize the industrial layout,improve the competitiveness of enterprise,but also can bring economies of scope,ensure the supply and demand,reduce the transaction cost.That is a strategy system that the enterprises often take.The vertical integration between the coal and electricity industiry in our country,on the one hand can solve the contradiction between "the market coal" and "the planned electricity",which has been lasting for a long time,on the other hand,can ease the problem of excess capacity of coal,stabling the supply,and ensure the sustainable development of the coal and power industries.So,the vertical integration between the coal and power industries in our country has been gradually increasing in recent years.This study followed the idea of "theory,model,demonstration".In the first part,the paper summarized the basic theory of vertical integration in three aspects,including the transaction cost theory,the vertical integration theory and game theory.And then reviewed and summarized the related articles home and abroad.There are two theoretical models in the second part,Stackelberg game model and cooperative game model,comparing the earnings of enterprises before and after the vertical integration.The result prove that the vertical integration can make enterprises income improved.In the third part,the paper summarized the motivations and patterns of vertical integration between coal and electricity industry,and analyzed the specific case about the vertical integration between coal and electricity industry.The forth part is the empirical part,basing on the different integration modes above mentioned,the paper selected the corresponding coal and electric power listed companies,and then used the principal component method of factor analysis to build a composite performance score model,checking the performance of vertical integration between China's coal and electricity listed companies.Finally,through theoretical analysis and empirical test,we drew the conclusion:overall,the vertical integration can improve the business performance,and the performance of the enterprises which chose wholly owned pattern and holding pattern is better than enterprises which chose participation pattern.Therefore,the government should encourage the vertical integration between coal and electricity industry,promote the development of the industrial chain,guide the mode transformation of the organization structure of the enterprises from participation pattern to the holding pattern.