An empirical study on China listing corporation industrial-financial combination based on the regression method
Zhiming Wang1, 2, Shuzhen Zhu1
1Glorious Sun School of Business and Management, Donghua University, Shanghai, 200051, P R China
2Shandong Iron and Steel Co., Ltd. Laiwu Branch, Laiwu, 271104, P R China
This paper takes Chinese listing corporation as research samples to find the best combination area or point about the industry-finance combination on enterprise operating performance. Research on the combination of behaviour impact is carried out through EPS, RPE, ROE, Tobin Q four indicators. The paper is mainly using the nonlinear regression method based on steel listing corporation annual data from 2005 to 2008. Experiments show that the relation by EPS, RPE and Tobin Q meeting the cubic function curve is significant; the relation by ROE meeting the curve function is not significant. In a certain stage of development of the enterprise the appropriate industry-finance combination area or ratio exists, but the ratio of each index is different.