The Study On Integration Of Industrial-Financial Capital In Chinese Railway Enterprises

Rail industry, as the most relevant industry to transportation and logistics, is playing a vital role in China’s fast-growing national economy, which requires adequate industry’s increase. The development of financial market has taken the idea "Integration of Industrial-Financial Capital" up a notch, and it would also provide a more rational allocation of resources, and a more sustainable way to grow.Integration of industrial-financial capital is a comparably young theory. It is a way for companies to increase their profitability. However, this theory in Rail Industry is still an idea without much examples. Therefore, this study has great practical significance.This thesis is built upon several solid researches on relevant topics. It first analyzes the inevitability of integration of industrial and financial capital from the theoretical perspective. Next, by leveraging the game model, it proves that the mutualistic symbiosis is the choice that railway companies are willing to take; it also explains the source of symbiosis energy and its allocation. Then, with the help of synergistic model, it analyzes the data gathered from other relevant industries, and finds the synergistic effect occurred in process of integrating the financial capital and industrial capital. Finally, it analyzes which type of integration the railway enterprises should take, and illustrates the risks and the ways to decrease them during the process of integrating industrial and financial capital.The conclusions are: ①The integration of industrial-financial capital will generate symbiosis energy; ②The synergistic model quantitatively explained the synergy effect emerged from the integration of industrial-financial capital process from a dynamic prospective, and it also proves that the integration of industrial-financial capital will boost companies’revenue and overall performance; ③Different modes of integrating financial capital and industrial capital, risks from policies and decision-making, and the ways to managing these risks. The risk management should be focused both on inside and outside the companies.