Study On The Financial Performance Of National Power Grid Integration

The combination of industry and finance is the result of the integration of industrial capital and financial capital,which can enable enterprises to accelerate their own development,expand their main business scope,and maintain their competitiveness in the market economy.In order to improve their financial performance and adapt to the rapidly developing market economy,many large enterprise groups in China,including central enterprises,have implemented a strategy of combining industry and finance.However,The combination of industry and finance has some disadvantages for enterprises.At the same time that enterprise groups obtain high returns by implementing the strategy of combining industry and finance,there are also high risks.Central enterprises are leaders in many the influence of combination of industry and finance on financial performance of enterprises,and are the mainstay of China’s national economy.This requires central enterprises to consider clearly when implementing industry-finance integration,whether the combination of finance will bring positive effects or negative effects to enterprise groups.Effect? As a pioneer in the integration of industry and finance in China’s central enterprises,State Grid’s in-depth research can provide important theoretical and practical significance for other enterprise groups to choose to implement the combination of industry and finance.This article discusses the impact of the combination of industry and finance on the financial performance of the State Grid on the basis of combing the relevant literature of industry and finance.Firstly,it analyzes from the perspective of the evolution of the concept of industry-finance integration,sorts out different viewpoints and definitions,and finally derives the concept of industry-finance combination according to the application of this article.Second,analyze the mode of combining industry with finance.Third,summarize and summarize the four theoretical foundations of the combination of industry and finance: enterprise diversification theory,transaction cost theory,resource basic theory and synergy theory.Then it studies the motivation of the combination of industry and finance and the path that affects financial performance.It is analyzed that three ways to form financial companies,participate in holding financial institutions,and get involved in diversified industries affect financial performance.Finally,the case of the State Grid is selected to summarize the three stages of the combination of industry and finance in the State Grid.It is proposed to study the five aspects of the industry-finance integration from improving the company’s net profit,obtaining financial support,reducing financial expenses,exerting synergies,and risks Affect the financial performance of the State Grid,and use the factor analysis model to analyze that the implementation of the strategy of combining industry and finance has a positive effect on the financial performance of the State Grid and improves the effective interaction between the real economy and the financial economy.The purpose of the project is to develop a combination of finance.For enterprises,the combination of industry and finance can develop more businesses and bring better performance,and establish and improve the internal risk control system of the enterprise.Through the analysis of the financial performance of the State Grid,we can see that the deeper the integration of industry and finance,the greater the impact on the financial performance of the enterprise.The combination of industry and finance has brought positive and negative effects to the State Grid,and the combination of industry and finance has brought high profits to the enterprise,but also caused problems such as capital integration risks and cash flow shortages.The empirical analysis of the financial performance of the State Grid can also show that the positive effect produced by the combination of industry and finance is greater than the negative effect.This study on the one hand enriches the research scope of the theory and implementation effect of the combination of industry and finance,on the other hand,it provides an incentive for other companies to integrate industry and finance.