IDEAS home Printed from https://ideas.repec.org/a/pal/palcom/v11y2024i1d10.1057_s41599-024-04098-8.html
   My bibliography  Save this article

Finance centralization—research on enterprise intelligence

Author

Listed:
  • Haochen Guo

    (Southeast University)

  • Petr Polak

    (Mendel University in Brno)

Abstract

In the context of digital transformation, financial centralization has emerged as a crucial strategy for enhancing the efficiency and effectiveness of corporate financial management. This paper explores the role of Artificial Intelligence (AI) in financial centralization within Chinese enterprises, particularly under the framework of digital corporate financial management. By analyzing multiple case studies, the research demonstrates how AI applications streamline financial processes, mitigate risks, and improve decision-making accuracy. The study focuses on three key AI-driven applications: automated reconciliation, intelligent report generation, and big data-based risk management. Additionally, the research examines the unique challenges and opportunities that private and state-owned enterprises face during AI-driven financial transformation. Through in-depth analysis, the paper offers valuable insights into how AI is reshaping the financial landscape, providing both practical and theoretical contributions. These findings offer valuable implications for financial managers, policymakers, and researchers seeking to leverage AI in the evolving field of intelligent financial management.

Suggested Citation

  • Haochen Guo & Petr Polak, 2024. "Finance centralization—research on enterprise intelligence," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-9, December.
    • Handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-04098-8
    DOI: 10.1057/s41599-024-04098-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41599-024-04098-8
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41599-024-04098-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. John R. Graham, 2022. "Presidential Address: Corporate Finance and Reality," Journal of Finance, American Finance Association, vol. 77(4), pages 1975-2049, August.
    2. Haochen Guo & Petr Polak, 2023. "Intelligent finance and change management implications," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-8, December.
    3. Haochen Guo, 2024. "Digital corporate financial management with AI in China - enterprise intelligence," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 25(1), pages 173-185.
    4. Takafumi Sasaki, 2015. "The Effects of Liquidity Shocks on Corporate Investments and Cash Holdings: Evidence from Actuarial Pension Gains/Losses," Financial Management, Financial Management Association International, vol. 44(3), pages 685-707, September.
    5. Heping Pan, 2011. "A Basic Theory Of Intelligent Finance," New Mathematics and Natural Computation (NMNC), World Scientific Publishing Co. Pte. Ltd., vol. 7(02), pages 197-227.
    6. Graham, John R. & Harvey, Campbell R., 2001. "The theory and practice of corporate finance: evidence from the field," Journal of Financial Economics, Elsevier, vol. 60(2-3), pages 187-243, May.
    7. Mahdi Nezafat & Tao Shen & Qinghai Wang, 2021. "Short selling, agency, and corporate investment," Financial Management, Financial Management Association International, vol. 50(3), pages 775-804, September.
    8. Kyung Hwan Yun & Jiatao Li & Chenguang Hu, 2024. "State dominance over the market: Reexamining the survival of China’s state-owned enterprises," Asia Pacific Journal of Management, Springer, vol. 41(1), pages 437-474, March.
    9. Erasmo Giambona & John R. Graham & Campbell R. Harvey & Gordon M. Bodnar, 2018. "The Theory and Practice of Corporate Risk Management: Evidence from the Field," Financial Management, Financial Management Association International, vol. 47(4), pages 783-832, December.
    10. Heping Pan & Didier Sornette & Kenneth Kortanek, 2006. "Intelligent finance—an emerging direction," Quantitative Finance, Taylor & Francis Journals, vol. 6(4), pages 273-277.
    11. Erik Lie & Yixin Liu, 2018. "Corporate Cash Holdings and Acquisitions," Financial Management, Financial Management Association International, vol. 47(1), pages 159-173, March.
    12. Brounen, D. & de Jong, A. & Koedijk, C.G., 2004. "Corporate Finance In Europe Confronting Theory With Practice," ERIM Report Series Research in Management ERS-2004-002-F&A, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    13. John Graham, 2022. "Presidential Address: Corporate Finance and Reality," NBER Working Papers 29841, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vivien Lefebvre, 2023. "Turning 30 and myopic? Temporal orientation and the firm lifecycle," Post-Print hal-04563638, HAL.
    2. Geelen, Thomas & Hajda, Jakub & Morellec, Erwan & Winegar, Adam, 2024. "Asset life, leverage, and debt maturity matching," Journal of Financial Economics, Elsevier, vol. 154(C).
    3. Sokolov, Mikhail V., 2024. "NPV, IRR, PI, PP, and DPP: A unified view," Journal of Mathematical Economics, Elsevier, vol. 114(C).
    4. Barry, John W. & Campello, Murillo & Graham, John R. & Ma, Yueran, 2022. "Corporate flexibility in a time of crisis," Journal of Financial Economics, Elsevier, vol. 144(3), pages 780-806.
    5. Giovanazzi, Carmen & Victor, Vincent & Putscher, Dorothee, 2024. "Corporate investment trends in Germany: The role of financialization, intangibles and M&A," ifso working paper series 40, University of Duisburg-Essen, Institute for Socioeconomics (ifso).
    6. Fabian Hollstein & Marcel Prokopczuk & Christoph Matthias Würsig, 2024. "Market power and systematic risk," Financial Management, Financial Management Association International, vol. 53(2), pages 233-266, June.
    7. Guedes, José & Santos, Pedro, 2016. "Valuing an offshore oil exploration and production project through real options analysis," Energy Economics, Elsevier, vol. 60(C), pages 377-386.
    8. Osborne, Michael J., 2010. "A resolution to the NPV-IRR debate?," The Quarterly Review of Economics and Finance, Elsevier, vol. 50(2), pages 234-239, May.
    9. Anastassiadis, Friederike & Liebe, Ulf & Musshoff, Oliver, 2012. "Finanzielle Flexibilität In Landwirtschaftlichen Investitionsentscheidungen: Ein Discrete Choice Experiment," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 137142, German Association of Agricultural Economists (GEWISOLA).
    10. Hermes, Niels & Smid, Peter & Yao, Lu, 2007. "Capital budgeting practices: A comparative study of the Netherlands and China," International Business Review, Elsevier, vol. 16(5), pages 630-654, October.
    11. Carlo Alberto Magni & Ken V. Peasnell, 2015. "The Term Structure of Capital Values:An accounting-based framework for measuring economic profitability," Department of Economics 0060, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    12. Kolev, Atanas & Randall, Timothy, 2024. "The effect of uncertainty on investment: Evidence from EU survey data," EIB Working Papers 2024/02, European Investment Bank (EIB).
    13. Peter Markovič & Michal Šinský, 2009. "Trends in application of capital budgeting methods for investment projects evaluation," Ekonomika a Management, Prague University of Economics and Business, vol. 2009(1).
    14. Andreas Hecht, 2021. "The role of managerial characteristics in FX risk management: Who increases risk?," Review of Managerial Science, Springer, vol. 15(8), pages 2377-2406, November.
    15. Nishihara, Michi & Shibata, Takashi & Zhang, Chuanqian, 2023. "Corporate investment, financing, and exit model with an earnings-based borrowing constraint," International Review of Financial Analysis, Elsevier, vol. 85(C).
    16. Grubisic Seba, Mihaela & Orsag, Silvije, 2015. "Corporate Motives For Public Shares Offering During The Financial Crisis," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 6(1), pages 99-114.
    17. Satish Kumar & Riya Sureka & Sisira Colombage, 2020. "Capital structure of SMEs: a systematic literature review and bibliometric analysis," Management Review Quarterly, Springer, vol. 70(4), pages 535-565, November.
    18. G. Oka Warmana & I. Ketut Rahyuda & Ida Bagus Anom Purbawangsa & Ni Luh Gede Sri Artini, 2020. "Investigating Capital Structure Speed of Adjustment (SOA) of Indonesian Companies for Corporate Value," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 21(3), pages 215-231, September.
    19. Gebauer, Stefan & Setzer, Ralph & Westphal, Andreas, 2017. "Corporate debt and investment: a firm analysis for stressed euro area countries," Working Paper Series 2101, European Central Bank.
    20. Chittenden, Francis & Derregia, Mohsen, 2015. "Uncertainty, irreversibility and the use of ‘rules of thumb’ in capital budgeting," The British Accounting Review, Elsevier, vol. 47(3), pages 225-236.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-04098-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: https://www.nature.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.