Research On The Influence Of Vertical Integration Of Nonferrous Metals Industry On Financial Risk Of Enterprises

In recent years,with the rapid development of China's economy,the non-ferrous metal industry has developed rapidly,among which the non-ferrous metal industry plays an important role in the development of national economy.With the continuous expansion of industrial scale,domestic non-ferrous metal enterprises have embarked on the road of rapid expansion,and continue to implement vertical integration strategy.On the one hand,with the continuous development of non-ferrous metal resources in China,high-quality resources become more scarce,and the vertical integration of non-ferrous metal enterprises is conducive to controlling high-quality mineral resources,reducing dependence on upstream enterprises and improving bargaining power.The process of vertical integration of non-ferrous metal industry is long,which requires a lot of investment in capital,technology and human resources,but is influenced by many factors,such as the transformation and upgrading of the economic structure of the industry and the transformation of the business structure of the company.This paper takes the cloud aluminum shares in the non-ferrous metal industry with high vertical integration level as the research object,and takes the financial data before and after the vertical integration as the research material.Through the background,motivation and implementation steps of vertical integration of cloud aluminum shares,the financial risk after vertical integration of cloud aluminum shares is revealed.The paper first expounds the theoretical basis of vertical integration from the theory of industrial organization,transaction cost and asset specificity,and analyzes the financial impact of vertical integration on enterprises from the point of view of core competitiveness,contract probability and asset specificity.Secondly,by analyzing the development status,industry chain,vertical integration trend and industry policy of non-ferrous metal industry,the VAS model is used to calculate the vertical integration degree of the industry,and the financial risk grade of listed industry is classified by Z model;Then,this paper describes the risks faced by the vertical integration of cloud aluminum shares in the case company,and points out that in the process of vertical integration,the opportunity cost of enterprises is increased in the face of unfamiliar industries.Blind investment in expansion leads to weakening the competitiveness of superior resources.Finally,the impact of vertical integration strategy on enterprise financial risk is analyzed from three aspects: business situation,debt situation and capital situation.It is concluded that cloud aluminum shares have double operating risk,tight cash flow and high short-term repayment pressure in the process of radical vertical integration expansion,which leads to financial crisis.At the end of this paper,through the study of financial risk under the vertical integration of cloud aluminum shares,this paper puts forward some countermeasures,such as improving the scientific nature of decision-making,avoiding blindly following the trend of investment,reducing liabilities,speeding up capital turnover,and introducing talents to establish financial risk early warning mechanism.