The Impact Of Cultural Diversity On Financialization Of Enterprises

After the world financial crisis in 2008,due to the difficulties of the real economy,many non-financial enterprises have become more and more involved in financial assets investment and financial activities,which has led to the trend of "from real to virtual".From the "China Development Forum 2017" economic summit,the "virtual risk" is listed as the top of six risks in the development of the financial industry.The report of the Nineteenth National Congress clearly pointed out that "it is necessary to deepen the reform of the financial system and enhance the ability of the financial sector to serve the real economy".All of these reflect that the situation of China's economy" from real to virtual"has been closely watched by the Party and its leaders.In recent years,the micro expression form of economic "from real to virtual"is enterprise financialization,which has been widely concerned by scholars at home and abroad.However,scholars' researches on the financialization of enterprises mainly focus on the reasons of company-level inquiry,the relationship with the macroeconomic environment,the impact on corporate innovation and the relationship with the rate of return etc.While few literatures have explored the impact of the financialization of enterprises from the perspective of the informal system.At the same time,the intersection and integration of "culture and economic or finance" have gradually become the focus of domestic and foreign scholars in recent years.The top scholars of international finance have gradually recognized that culture,an informal institutional factor,affects corporate finance.Financial economics research is carrying out the innovation of informal institutional factors such as culture.Cultural diversity is an important manifestation of culture.Therefore,this paper starts from the perspective of cultural diversity,then explores the impact of cultural diversity on enterprise financialization,the specific impact mechanism and obtains inspiration from it.It has strong theoretical and practical significance.This paper takes 1985 non-financial enterprises in Shanghai and Shenzhen A-share market from 2007 to 2017 as the research object.The financial indicator of the enterprise being interpreted is the relative scale of corporate financial investment calculated based on the measurement method of asset account.The explanatory variable of cultural diversity is the differentiation index of urban dialects as an alternative variable.At the same time,the growth rate of provincial economic development level,provincial financial development level and other provincial level indicators are taken as provincial-level control variable.Company age,asset-liability ratio and other corporate level indicators are used as company-level control variables.Firstly,an empirical model is constructed to analyze the basic regression results and test the grouped samples.Secondly,select the topographic relief of the city where the listed company is located as the instrumental variable to test the endogeneity problems.Then,drawing on the social opposition model proposed by Desmet et al.,using the selected questions from Chinese General Social Survey,we construct the gene distance index and the overlap index of national cultural diversity of each province as alternative variables of cultural diversity and conduct the robust test.Finally,the paper explores the communication mechanism and trust mechanism of the influence of cultural diversity on enterprises'financial investment behavior by the intersection of regional distribution dummy variable and dialect differentiation index multipliers,province trust degree and dialect differentiation index multipliers.The empirical results show that:firstly,there is a negative correlation between cultural diversity and financial investment of non-financial enterprises.Secondly,compared with private enterprises,the impact of cultural diversity on the financialization of enterprises is more obvious in state-owned enterprises.Thirdly,compared with other industries,the influence of cultural diversity on the financialization of enterprises is more obvious in manufacturing enterprises.Fourthly,cultural diversity has a more obvious inhibitory effect on the financialization of enterprises in areas with net population inflow.Fifthly,the mechanism of the influence of cultural diversity on the financial investment of non-financial enterprises lies mainly in the cultural effect,that is,the trust mechanism.According to this paper,enterprises should pay more attention to the impact on the financial development of the company from a cultural perspective.The government should fully combine and make good use of the regulation effect of Chinese unique culture on economy.Apply the interaction between informal institutions such as culture and formal institutions to economic development.It is better to stimulate the energy of economic and financial development.