Enterprise Group's Integration of Industry and Finance: 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, and fully utilizing the leverage effect of financial resources. This, in turn, helps expand the economies of scale 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 common large-scale enterprise organization form 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 formation mechanisms of the financial industry development strategy of large enterprise groups centered on industry, as well as the intrinsic drivers of industrial-financial integration. The aim is to explore how large enterprise groups can effectively utilize their resources and economies of scale and scope by pursuing industrial-financial integration, achieving market control through corporate control, and 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 choices for the financial industry development strategy of large enterprise groups. Additionally, the book conducts a systematic research and discussion on the optimal governance model of the financial industry in enterprise groups—the financial holding company. 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 to implement the "big company, big group" strategy.