Is Transaction Cost an Important Factor Influencing Vertical Integration Selection?——An Empirical Test Based on Chinese Coal and Electricity Listed Companies
Is Transaction Cost an Important Factor Influencing Vertical Integration Selection?——An Empirical Test Based on Chinese Coal and Electricity Listed Companies
XU Bin
(Research Center for Cluster and Enterprise Development, College of Business Administration, Jiangxi University of Finance and Economics, Nanchang 330013, China)
Abstract Taking the vertical integration of fifty-two Chinese cola and electricity listed companies as examples, using panel data model, the author analyzed the factors that coal and electricity enterprises consider when choosing vertical integration patterns. The results show that transaction costs have great impact on the adoption of vertical integration by coal and electricity enterprises, production costs and strategies have less impact, which proved that transaction cost and organization cost have influence on the selection of vertical integration. Vertical integration is an effective but not the only choice to coordinate China's coal and electricity.
XU Bin. Is Transaction Cost an Important Factor Influencing Vertical Integration Selection?——An Empirical Test Based on Chinese Coal and Electricity Listed Companies. Economic Survey, 2012, (1): 012.
2012, Vol. 
