Research On The Impact Of AM Company’s Fintech Business On Performance

In 2015,the release of the "Guiding Opinions on Promoting the Healthy Development of Internet Finance" pointed out the direction for the development of China’s Internet finance industry.In 2016,the Financial Stability Board(FSB)proposed the definition of "Fintech".By the release of the "Fintech Development Plan(2019-2021)" in 2019,the development of F intech has risen to a government-level strategy,and China’s Fintech has ushered in a boom stage of development.In 2012,with the withdrawal of the "Home Appliances to the Countryside" policy,China’s home appliance industry has entered a downward period,and market competition will further intensify.Under the trend of China’s economic transformation and upgrading,home appliance companies have started the road of transformation,and a number of home appliance companies have begun to deploy Fintech.Among all the home appliance companies that carry out Fintech business,most of them deploy the Fintech field based on their industrial chain,and carry out businesses such as supply chain finance and consumer finance.There are also a small number of companies that do not rely on the industrial chain to independently operate their Fintech business,forming a situation in which their home appliance business and Fintech business are independent of each other.Further analysis found that the Fintech of the integration of industry and finance helps enterprises to achieve industrial synergy and create a healthy development ecosystem,while the Fintech of independent operation has not brought continuous improvement in the performance of enterprises.Why do Fintech businesses bring different consequences to home appliance companies in the two ways?This thesis focuses on this issue.Based on the above background,this thesis firstly sorts out the related researches on Fintech and home appliance enterprises through literature review,and combines the development status of Fintech business in China’s home appliance industry to construct a mechanism for home appliance enterprises to carry out Fintech business on corporate performance,and specifically distinguish between industry and finance Combination and independent management in two ways.On this basis,this thesis selects AM Company as a case study.After introducing the development status of AM Company and the development process of its Fintech business,it first analyzes the motivation for its independent development of Fintech,and further analyzes the impact of AM Company’s Fintech business on the role mechanism of enterprise performance,and finally analyze its enterprise performance through financial index method and event research method.Finally,the following conclusions are drawn:(1)On the one hand,home appliance companies are engaged in Fintech business to seek transformation due to the external pressure of the saturation of the home appliance market.On the other hand,due to the motivation of seeking profit growth points and market value management,it is expected that the development of Fintech can bring about an increase in profitability and stock price.(2)The independent operation of Fintech by home appliance companies has expanded the source of income from the operational level,strengthened the bank-enterprise relationship and released positive signals to promote the stock price increase from the financing level,which in turn promoted the improvement of corporate performance;however,the Fintech business has also expanded the Fintech risks and regulatory tightening risks faced by enterprises from the operational level,increased the debt default risk of enterprises from the financing level,and caused over-investment,crowding-out effects and interest transfer problems from the investment level,this in turn adversely affects business performance.(3)The independent development of Fintech by home appliance companies has an impact on corporate performance in many aspects.These impacts are both positive and negative.Generally speaking,the negative effect is greater than the positive effect.The independent operation of the Fintech business has achieved short-term financial performance and market performance.However,with the further deployment and operation of the Fintech business,corporate performance began to decline.From the micro perspective,this thesis studies the economic consequences of enterprises’own Fintech business,enriches the relevant literature on Fintech and household appliance enterprise performance,provides reference for China’s household appliance industry and other entity enterprises,and has certain enlightenment significance for the supervision and incentive of China’s Fintech development.