Research On The Motivation And Effect Of Financial Asset Allocation Of Entity Enterprises

In recent years,many entity enterprises begin to allocate financial assets outside the core business.This leads to the trend of financialization enterprises and the " virtual economy instead of real economy ",which may bring financial risk.In cost rising and profits falling,some entity enterprises began to develop the financial business outside of the entity business,as an important source of profit,which make the development direction of enterprises differ from the concentration of industry,embodied in the financial asset allocation scale grew rapidly and imbalance in the structure of real assets and financial assets,which makes financial investment taking up a large cash flow,leverage and financial risk increasing.Therefore,the government stressed that "risk prevention" is placed in an important position,the key is to "resolutely prevent the virtual economy instead of real economy " and the financial industry back to the essence of the real economy.In view of this,this thesis studies the motivation and effect of financial asset allocation in real enterprises,which has important practical significance.The research question of this thesis is: First,the reason of holding financial asset allocation;Second,the crowding out effect of financial asset allocation on entity enterprise operation under the substitution motivation;Third,the impact of financial asset allocation on efficient effects and financial effects.The research method of this thesis makes use of the financial asset allocation behavior of CHUYING AGROPASTORAL to conduct a case study on individual microscopic mechanism.The findings of this thesis are as follows :First,the motivation of allocating financial assets is mainly substitution motivation.Second,by analyzing the effect of CHUYING AGRO-PASTORA financial asset allocation behavior on the economic effect of enterprises under the substitution motivation,it can be concluded that the allocation of financial assets has led to the virtual contribution of profits,the appropriation of capitalized expenditures and the appropriation of operating income,and resulted in the decline of the enterprise’s market competitiveness.The poor performance of operation and investment effect has led to the conclusion that the allocation of financial assets aggravates the enterprise’s financial risk and is not conducive to the long-term development of the company.Third,combined with the financial data,it is found that the large allocation of financial assets has a negative impact on the financial risk,the risk of rising capital cost,and the liquidity risk and bankruptcy risk of the company are aggravated.At the same time,the earnings management also affected the company’s operation and brought negative effects,increasing financial risks.