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

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 in-dustries 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.

Automated summary

This paper explores the impact of the two-way integration of manufacturing and service industries on enterprise value. By studying 12 manufacturing sectors in 29 provinces of China and Chinese A-share manufacturing listed companies, the authors find that this integration increases the value of manufacturing enterprises, particularly in non-state-owned, equity-concentrated, or technology-intensive industries. The integration achieves this by increasing corporate risk-taking. The findings provide valuable recommendations for managers and government agencies to promote high-quality development of the manufacturing industry.