Enterprise Group's Integration of Industry and Finance - Theory and Practice (PhD Series in Economic Management): Theory and Practice

Author: Zhao Wenguang
Publisher:
Publish Date: 2004-01-01
Features: This book explores the development path of industrial-financial integration in enterprise groups. It holds significant strategic importance for improving the financial functions of enterprise groups, rapidly accumulating strategic financial resources, fully utilizing the leverage effect of financial resources, expanding the scale economy of enterprise groups, thereby gaining competitive advantages and enhancing their international competitiveness. The author selects industrial-financial integration as the research perspective, breaking conventional thinking patterns and preliminarily constructing a micro-level research system for industrial-financial integration. This leads to new breakthroughs and theoretical discoveries in the study of industrial-financial integration, injecting fresh perspectives into further research on this issue. Essentially, the book's research covers two main aspects: First, it places the research perspective of industrial-financial integration at the micro-level of the market economy system, taking the company group—a large-scale enterprise organization form widely existing both domestically and internationally—as the research subject. With the integration of industrial capital and financial capital as the fundamental basis, it employs theories such as the Resource-Based View, Value Chain Theory, Transaction Cost Theory, and Industrial Economics to conduct theoretical and empirical analyses of the generation mechanisms of the financial industry development strategy of large enterprise groups centered on industry, as well as the intrinsic driving forces of industrial-financial integration. The aim is to explore how large enterprise groups can effectively utilize their resources and scale economies and scope economies by pursuing industrial-financial integration to achieve market control through corporate control, thereby enhancing the core competitiveness of the entire enterprise group. Second, against the backdrop of China's entry into the WTO, the author proposes the path selection for the financial industry development strategy of large enterprise groups and conducts a relatively systematic research and discussion on the optimal governance model of the financial industry in enterprise groups—financial holding companies. This provides a basis for China's financial industry to eventually adopt a mixed-operation model under unified regulation, as well as for formulating relevant policies for the implementation of the "large companies, large groups" strategy.