Research On The Impact Of Combination Between Industry And Finance On Corporate Performance Variability

With the rapid development of China's economy and the growing maturity of the capital market,the industrial sector and the financial sector began to participate in each other and gradually integrate.This phenomenon is known as "the combination between industry and finance".After 2010,the state successively issued relevant supporting policies,which further promoted the mutual integration and in-depth development of industrial capital and financial capital in our country,making more and more large-scale enterprises with abundant capital begin to take holding shares of financial institutions as their development strategy.The combination between industry and finance can not only integrate financial capital and industrial capital,make them obtain synergy effect in operation,management,finance and other aspects,enable enterprises to carry out diversified operation,improve performance level and enhance risk resistance ability,but also reduce the degree of information asymmetry,save transaction cost,improve access to funds and reduce the corporate performance variability.However,if we fail to give full play to the synergy advantage of industry finance integration,it may make the enterprise face huge risks and increase the corporate performance variability.Therefore,the combination between industry and finance may have a certain impact on the corporate performance variability.Some scholars have studied the impact of the combination between industry and finance on business performance from the static performance level,while the development status of corporate after the integration between industry and finance and the risks that corporate may face need to be measured by dynamic performance variability indicators.Therefore,this paper will study the impact of the combination between industry and Finance on corporate performance volatility.As the nature of property rights and the level of marketization will have an important impact on the efficiency of investment and financing,the level of performance and the robustness of operation,this paper will also focus on the regulatory role of the nature of property rights and the level of marketization in the combination between industry and finance in the relationship of corporate performance volatility.This paper studies the impact of different characteristics of the combination between industry and finance on the corporate performance volatility,takes the nature of enterprise property rights and the market-oriented level of the enterprise operation place as the regulating variables,based on related theories analyzes the influence mechanism of the combination between industry and finance on the corporate performance volatility and puts forward the research hypothesis.Based on the data of A-share listed companies in 2006-2016 and relevant financial data of non-listed financial institutions,select variables and establish multiple regression models.Empirical research is conducted on the relationship between the combination of industry and finance and corporate performance volatility,as well as the regulatory role of property right nature and market-oriented water level.After the conclusion is drawn,suggestions are put forward from the enterprise,financial institutions and policy level.This paper draws the following conclusions:(1)there is a negative correlation between holding equity of non-listed financial institutions and the corporate performance volatility,that is,the combination between industry and finance will reduce the corporate performance volatility.(2)The negative correlation between the shareholding ratio of non-listed financial institutions and the corporate performance volatility is that the higher the shareholding ratio,the lower the performance volatility of enterprises.(3)Different types of non-listed financial institutions have different effects on the corporate performance volatility.(4)The property right of non-state-owned enterprises will strengthen the negative correlation between the combination between industry and finance and the corporate performance volatility,that is,the corporate performance volatility of non-state-owned enterprises will be smaller after the combination between industry and finance.(5)The lower level of marketization will strengthen the negative correlation between the combination between industry and finance and the corporate performance volatility,that is to say,the corporate performance volatility is smaller after the combination between industry and finance in the low level of marketization.The conclusion of this paper deepens and expands the theoretical system of the combination between industry and finance in theory,which provides the empirical basis for further improving the policy promotion of the combination between industry and finance,innovating the financial service mode,optimizing the capital market,helping to give full play to the advantages of the combination of industry and finance in practice and providing ideas for enterprises to reduce the performance fluctuation.