Research On The Influence Of Setting Up Finance Companies On Profitability Of State-owned Key Enterprises

At present,China's enterprise group finance company has been developed for three decades and has gone through three stages of exploration,gradual standardization and functional adjustment.Now it has entered a period of steady development.The advantages of financial companies in the centralized management of large-scale enterprise groups are gradually recognized and accepted by the community.Regulators through the timely adjustment of regulatory requirements for financial companies to adapt to the rapid development of China's market economy and the needs of large-scale enterprise group fund management.From the number of institutions,the central corporate finance company in the entire financial company industry has always occupied the largest proportion.The beginning of the establishment of the finance company was to support the reform of state-owned enterprises,especially the central enterprises,and by 2016,73 of the 102 central enterprises in the country have set up financial companies.In view of the status of central enterprises in the national economy of our country and the ubiquitous status of finance companies in central enterprises,this paper analyzes the impact of financial companies on the profitability of central enterprises.In this paper,theoretical analysis and empirical test to combine the way to carry out research.First of all,by consulting the domestic and foreign financial companies related literature,elaborating on the financial companies in the centralized management of funds,functional positioning and scope of business,and then analyze the status of China's central state-owned financial companies and some existing problems,and finally in the above theoretical basis on the use of Excel and Stata software for empirical research.The data used in the empirical research are from the“Report on Economic Operation of Central Enterprises”from 2010 to 2013 and the“Statistical Yearbook of China Enterprise Finance Company”,including the data from 117 central enterprises,17 economic indicators and the economic operation data from 2010 to 2013.In the empirical research,the index operating income,which represents the profitability,is taken as the explanatory variable.The dummy variables of the financial company are the explanatory variables,the total assets of the enterprise,the total amount of the liabilities,the employees and other indicators as the control variables,and the regression model is used for empirical research.The results show that the establishment of financial companies has a significant positive impact on the profitability of the central enterprises.The financial companies can promote the profitability of the large-sized enterprise groups by increasing the concentration of funds of large-scale enterprise groups,increasing the utilization of idle funds,improving the efficiency of financial services and reducing the operating costs Enterprise Group to enhance profitability.The result of this study confirms the active role of the central state finance company in improving the profitability of the enterprise group,provides the data support for the establishment of the finance company in the large-scale enterprise group,and also provides an empirical study for the study on the centralized fund management of the finance company in our country new ideas and directions.