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Integration of two industries, risk-taking and manufacturing enterprise value: An empirical investigation based on Chinese listed companies

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  • Zhang, Cheng
  • Zheng, Yifan
  • Fan, Shide
  • Wu, Yujuan

Abstract

This paper discusses whether the two-way integration of manufacturing and service industries enhances enterprise value. After studying 12 manufacturing sectors in 29 provinces of China and Chinese A-share manufacturing listed companies, we find that the integration of the two industries increases the value of manufacturing enterprises. The results suggest that the integration plays a greater role in promoting non-state-owned, equity-concentrated, or technology-intensive industries. The integration can increase the value of manufacturing enterprises by increasing the level of corporate risk-taking. Further, the results provide recommendations for managers and government agencies to promote high-quality development of the manufacturing industry.

Suggested Citation

  • Zhang, Cheng & Zheng, Yifan & Fan, Shide & Wu, Yujuan, 2023. "Integration of two industries, risk-taking and manufacturing enterprise value: An empirical investigation based on Chinese listed companies," Finance Research Letters, Elsevier, vol. 53(C).
    • Handle: RePEc:eee:finlet:v:53:y:2023:i:c:s1544612322007681
    DOI: 10.1016/j.frl.2022.103592
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    Cited by:

    1. Wang, Shuangjin & Zhang, Xiaoqian & Cebula, Richard J. & Foley, Maggie, 2024. "Cross-shareholding, Managerial capabilities, and Strategic risk-taking in enterprises: A game or a win-win?," Finance Research Letters, Elsevier, vol. 62(PB).

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