Can industrial–financial integration boost corporate TFP? Evidence from listed corporations holding financial institutions’ shares

Enhancing total factor productivity (TFP) is critical for driving high-quality economic development in China. This study examines whether industrial–financial integration—a key strategy for advancing large corporate conglomerates—contributes to boosting corporate TFP. Drawing on analysis of panel data from non-financial corporations listed on China’s A-share market (2008–2023), this study demonstrates three main empirical findings. First, industrial–financial integration positively influences corporate TFP, particularly benefiting corporations in the maturity stage, as opposed to those in the growth or decline stages. Second, industrial–financial integration enhances corporate TFP through three primary channels: compensation incentive, innovation input, and operational capacity. Third, the positive effects are more pronounced for corporations with low financing constraints, those in highly competitive or non-high-tech industries, and those located in provinces with advanced financial development. This study’s findings provide a theoretical framework guiding policy development and corporate strategies aiming to leverage financial mechanisms in advancing the real economy.