Research On Institutional Logic And Micro Effect Of Corporate Financialization

In recent years,the risk of China’s physical investment has been increasing,and the scissors gap between virtual and real economic returns has continued to increase.In order to avoid the risk of physical investment and improve the return on capital,more and more non-financial companies gradually deviate from their main business and invest the funds originally used for production and operation in financial assets.The level of financialization is getting higher and higher,and financial Behaviour is becoming more and more common.Many literature studies confirm that corporate financialization crowds out physical investment and inhibits R&D innovation.To this end,government decision-makers have paid close attention to the phenomenon of corporate financialization,and have issued a series of policies to guide funds to “remove the virtual and turn them into reality”,but the implementation of relevant policies has not effectively reversed the phenomenon of corporate financialization.Therefore,it is necessary to conduct in-depth research on corporate financialization behavior to reveal the internal motivation and behavioral logic of corporate financialization,provide a useful reference for the introduction and revision of relevant government policies,and provide useful assistance for an early reversal of the economic "departure from real to virtual" situation.The questions that this paper aims to study are:(1)What is the institutional logic of corporate financialization?(2)What microeconomic effects will corporate financialization have? Firstly,this paper uses the normative analysis method to reveal the institutional logic of corporate financialization from the perspectives of interest rate control and banking entry restrictions,and analyzes the economic effects of corporate financialization from the perspectives of financial performance,total factor productivity and stock price crash risk,and proposes related titles.Then,this paper evaluates and interprets the characteristic facts of corporate financialization using statistical and comparative analysis.Finally,based on the financial data of Chinese listed companies from 2007 to 2019,this paper conducts a corresponding empirical analysis.The main conclusions are as follows:(1)Interest rate controls and banking entry restrictions are important institutional factors driving corporate financialization behavior.interest rate Regulation will distort resource allocation and reduce the return on investment of real companies;it will also have the effect of interest spreads and shadow banking,increase the profits of commercial banks,increase the rate of return in the financial industry,and enhance the motive of corporate financial arbitrage.Compared with less competitive industries,interest rate control has a more obvious role in promoting corporate financialization in highly competitive industries.The relaxation of banking entry restrictions will increase the credit supply in the market,expand financing channels for small,medium and micro companies,and ease the distorting effect of interest rate controls on resource allocation;it will also reduce banking profits,narrow the gap between financial and real returns,and weaken the The company’s cross-industry arbitrage motive.However,there is heterogeneity in the negative moderating effect of the relaxation of banking entry restrictions,which is more pronounced in the sample of firms in non-state-owned and regions with a better legal environment.(2)There is an inverted "U" curve relationship between corporate financialization and financial performance.When the level of financialization is lower than When the financialization level is higher than 34.96%,the company’s financialization activities will optimize the financial performance;when the financialization level is higher than 34.96%,the company’s financialization activities will deteriorate the financial performance.Physical investment is an important transmission channel through which financialization affects financial performance.Compared with the non-standard audit opinion and the two-rights combined sample,the inflection point of the inverted "U"-shaped relationship between financialization and the standard audit opinion and the company’s financial performance with the separation of two rights appears earlier.(3)There is an inverted "U" curve relationship between corporate financialization and total factor productivity.When the level of financialization is lower than When the level of financialization is higher than 9.51%,the company’s financialization activities will increase the total factor productivity;when the financialization level is higher than 9.51%,the company’s financialization activities will reduce the total factor productivity.R&D investment is an important transmission channel through which financialization affects total factor productivity.Compared with the samples of the integration of two rights and the non-insurance of director,supervisor and senior liability insurance,the inflection point of the inflection point of the TFP relationship between financialization and the separation of two rights and the insured director,supervisor and senior liability insurance company appeared earlier.(4)There is a“U”curve relationship between corporate financialization and stock price crash risk.When the financialization level is lower than 27.95%,the company’s financialization activities will reduce the stock price crash risk;when the financialization level is higher than 27.95%,the company’s financialization activities will increase the stock price crash risk.The quality of accounting information is an important transmission channel for financialization to affect the risk of stock price crash.The “U”-shaped relationship between financialization and company stock price crash risk is more pronounced in the non-state-owned and analyst-focused samples than in state-owned and non-analyst-focused companies.According to the above conclusions,the policy enlightenment of this paper lies in:(1)we should improve the financial market system and improve the corporate financing environment;(2)Financial disclosure should be standardized;(3)We should guide the company to establish a correct concept of profitability and stimulate the internal driving force of innovation.The innovations of this paper are as follows:(1)based on the basic view of the "Two-sided" characteristics of corporate financialization,this paper makes up for the defect that some documents oppose the "reservoir" effect and "investment substitution" effect,and forms a complete theoretical framework containing the effects of "reservoir" and "investment substitution";(2)This paper establishes a nonlinear model for the study of the microeconomic effects of corporate financialization,verifies the "Two-sided" characteristics of corporate financialization("moderate financialization is beneficial and excessive financialization is harmful"),and determines the level of moderate financialization under different financial objectives,which lays a solid foundation for scientifically and positively recognizing the behavior of corporate financialization and clarifying the nature of corporate financialization;(3)From the perspective of financial system,this paper analyzes the institutional causes of corporate financialization;It also confirms the promoting effect of interest rate regulation and banking entry restriction on corporate financialization,and makes a marginal contribution to examining the institutional causes of corporate financialization.(4)This paper reveals the mechanism and heterogeneous influence of the institutional logic and economic effect of corporate financialization,which provides useful thinking for opening the black box of corporate financialization and guiding the company to return to its main business.