The Dairy Enterprise Vertical Integration And Business Performance

Since China's reform and opening up,with the improvement of the living standards of Chinese people,the demand of finished goods continuous growing,which use raw as raw material,safety and health of dairy food industry has become a new growth point.From the perspective of the external cause,public demand for dairy products safety?health and shortcut,prompt he enterprise to integrate the upstream supplier to stabilize raw milk raw material quality,merger or new downstream distributors to guarantee the timely delivery of products.From the perspective of internal cause,the industry chain of dairy industry is closely linked,with natural integration tendency,fresh milk processing has strict timeliness,and the control of the sales link directly affects the enterprise value growth.Therefore,dairy companies have a good foundation of vertical integration.However,in the process of vertical integration of dairy enterprises into animal husbandry,the livestock industry itself has a large limitation,and a large number of self-sustaining and productive dairy cows have a large risk of disease transmission,and a small amount of them can hardly achieve the effect of large-scale economy,while there is a large cost input to increase the enterprise capital pressure.Vertical integration effects on enterprise performance in dairy companies has a strong research value and significance,this article through to the domestic dairy listed companies screening analysis,to the Inner Mongolia Yili Industrial Group for the case study company,a detailed study on dairy enterprise vertical integration for a long time span to evolution to the enterprise long-term performance and the impact of short-term market reaction.This paper uses the input-output ratio method to measure the Inner Mongolia Yili Industrial Group the degree of vertical integration,builds four phase analysis framework,choose long-term performance indicators and short-term market reaction CAR to quantify the return analysis,the following three conclusions.First,the Inner Mongolia Yili Industrial Group never ? vertical integration stage to quasi ? vertical integration stage,degree of vertical integration of enterprise financial performance basic negative impact profitability indicators,only positive impact on gross margin index.Second,the Inner Mongolia Yili Industrial Group from quasi ? vertical integration stage to ? vertical integration phase,enterprise financial performance stable level.?from vertical integration stage to vertical integration after ? B stage,degree of vertical integration of enterprise financial performance with positive impact profitability indicators.Third,the Inner Mongolia Yili Industrial Group vertically integrated event announcements have a significant impact on the securities market value,and for the positive influence,vertical integration is helpful to enhance the enterprise market value.his paper has enriched the research on the vertical integration and enterprise performance of dairy enterprises,find that the dairy enterprise vertical integration and enterprise long-term performance into a u-shaped relationship,and provided reference for the future development of dairy industry enterprises.