An Industry-Comparative Study on Corporate Financial Management and Investment Strategies: Conrail Case Analysis

Keyuan Zhao

2025

Abstract

This study conducts an industry-comparative analysis of corporate financial management and investment strategies through the lens of the U.S. railway freight carrier Conrail (1987-1999). Positioned as a pivotal legacy operator in a capital-intensive, deregulated industry, Conrail faced structural challenges-high fixed costs, cyclical demand, and infrastructure burdens-distinct from retail (Walmart), aviation (Delta), and venture capital sectors. By benchmarking Conrail's practices against these diverse industries, the research deciphers how industry-specific variables (e.g., asset longevity vs. inventory turnover) shape financial governance. Findings reveal critical misalignments: Conrail's debt-heavy capital structure (59.5% debt-to-equity ratio) constrained liquidity, while myopic investments) eroded competitiveness against trucking. Comparatively, retail prioritized agile working capital, aviation leveraged fleet lifecycle management, and VC embraced high-risk equity financing. The study underscores that financial strategy adaptability to sectoral constraints-such as regulatory compliance in rail versus rapid tech obsolescence-is paramount for resilience. It bridges a literature gap by linking operational realities (e.g., asset utilization) to strategic financial decisions, offering actionable insights for firms navigating industry-specific risks. This research highlights the imperative of tailoring financial frameworks to industry ecosystems to foster sustainable growth.

Paper Citation

in Harvard Style

Zhao K. (2025). An Industry-Comparative Study on Corporate Financial Management and Investment Strategies: Conrail Case Analysis. In Proceedings of the 2nd International Conference on Engineering Management, Information Technology and Intelligence - Volume 1: EMITI; ISBN 978-989-758-792-4, SciTePress, pages 314-320. DOI: 10.5220/0014353100004718

in Bibtex Style

@conference{emiti25,
author={Keyuan Zhao},
title={An Industry-Comparative Study on Corporate Financial Management and Investment Strategies: Conrail Case Analysis},
booktitle={Proceedings of the 2nd International Conference on Engineering Management, Information Technology and Intelligence - Volume 1: EMITI},
year={2025},
pages={314-320},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0014353100004718},
isbn={978-989-758-792-4},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on Engineering Management, Information Technology and Intelligence - Volume 1: EMITI
TI - An Industry-Comparative Study on Corporate Financial Management and Investment Strategies: Conrail Case Analysis
SN - 978-989-758-792-4
AU - Zhao K.
PY - 2025
SP - 314
EP - 320
DO - 10.5220/0014353100004718
PB - SciTePress