Vertical Integration Degree,Agency Cost And Technical Efficiency Of China Iron And Steel Enterprises

The ever-changing global competitive environment,the pursuit of maximizing corporate profits and the need for their own development have contributed to the vertical integration of iron and steel enterprises.However,enterprises take a vertical integration strategy of enterprises cannot get absolute benefits,some negative effects will follow.Therefore,this paper explores whether the vertical integration behavior is effective by exploring the influence of the vertical integration degree of the iron and steel enterprises on the technical efficiency of the enterprise,and further explores how the different efficiency levels of the agents can regulate the relationship between the two agents,and provide some reference for the formulation of enterprise vertical integration decision-making and the related theory.This paper summarizes the existing theoretical literatures and books on the vertical integration,agency cost and technical efficiency of enterprises.And according to the corresponding theory and the status quo of the enterprise,I put forward two assumptions and based on the assumption that the establishment of the corresponding model.This paper analyzes the data of China's steel listed companies from 2008 to 2015,and explores how the vertical integration of steel listed companies affects the technical efficiency of the enterprises by using 43 listed companies as the research samples.According to the study we have come to some conclusions:(1)The vertical integration degree of the sample enterprise is positively related to the technical efficiency of the enterprise,that is,the vertical integration of the enterprise is conducive to the improvement of the technical efficiency of the enterprise;(2)When the agency's agency problem is relatively serious,the benefits of vertical integration will be smaller.In other words,the serious agency problem of enterprises will weaken the promotion of vertical integration and technical efficiency.Finally,according to the conclusion of this paper,we put forward the corresponding suggestions to the government and the enterprises respectively,and the related research is forecasted.