Aspects of Financial Stability of Horizontally and Vertically Integrated Business Structures
Year: 2025
Type: article
Abstract: This article is devoted to a comparative analysis of the aspects of financial stability of horizontally and vertically integrated business structures in the context of modern economic instability, identifying fundamental differences in the formation of their financial stability by optimizing operational processes and minimizing transaction costs, respectively. Studying the synergetic effects and specific risks of each integration model, it was revealed that horizontal integration demonstrates increased dependence on industry cycles while achieving economies of scale, while vertical integration ensures stable cash flows due to capital intensity and reduced flexibility, which forms various vectors of financial strategy. Based on the systematization of financial stability criteria and a comparative analysis of capital structures, the necessity of a differentiated approach to financial management depending on the type of integration structure is substantiated.
Source: Russian Journal of Management
Author: Aleksandr Petrov
Institution: Financial University
Language: English
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7117234635