Research On The Impact Of Corporate Financialization On Industrial Investment

Since the 1970 s,with the high expansion of the virtual economy sectors in developed countries such as Europe and the United States,the real economy sector has appeared financially.Coincidentally,as China's economy enters a new normal,China's entity companies are increasingly keen to invest in virtual economy sectors such as finance and real estate,and the degree of financialization of enterprises continues to increase.At the same time,China's industrial investment rate has continued to decline,and corporate financialization and industrial investment have deviated.Western scholars have conducted a lot of in-depth research on the relationship between corporate financialization and industrial investment,and domestic scholars have relatively few studies on this.In particular,the heterogeneity of financial assets in terms of liquidity and maturity structure often leads to differences in the impact of different types of corporate financialization on industrial investment.Therefore,it is necessary to study the impact of different types of financialization on industrial investment in light of China's actual situation.This is to clarify the specific impact of corporate financialization on industrial investment,reasonably guide corporate funds to return to industry,and prevent the economy from “de-reality”.It has important practical significance.To this end,this paper takes the non-financial listed companies from 2007 to 2017 as the research object,and analyzes the impact of corporate financialization on industrial investment from the perspective of financial assets heterogeneity.Specifically,firstly,this paper briefly introduces the background and significance of the research,and summarizes the existing related literatures,and clarifies the theme and research ideas of this thesis.Secondly,this paper analyzes the development of corporate financialization and industrial investment in China.The status quo,characteristics and trends of change;on the basis of the above,this study uses the theory of preventive savings,financing constraints and principalagent theory to analyze the theoretical mechanism of corporate financialization in industrial investment.In particular,this paper analyzes the specific impact of different types of corporate financialization on industrial investment from the heterogeneity of financial assets.In addition,this paper also introduces the external influence factors of monetary policy,and further analyzes the impact of the overall financialization of enterprises and the different types of financialization on industrial investment in a relaxed monetary policy environment.The research results show that:(1)The overall financialization of enterprises has a crowding-out effect on industrial investment,that is,in general,in order to chase high financial investment income,enterprises invest funds into virtual economy fields such as finance,which impairs the development of industrial investment.(2)From the perspective of heterogeneity of financial assets,transactional financialization has a reservoir effect on corporate industrial investment,that is,enterprises holding liquid financial assets with strong liquidity are conducive to the development of industrial investment.On the contrary,nontransactional financialization has a crowding-out effect on industrial investment,that is,nontrading financialization of enterprises participating in entrusted loans,shadow banking,real estate investment,etc.will have a negative impact on industrial investment;(3)loose monetary policy It has strengthened the crowding out effect of corporate financialization on industrial investment.In other words,on the whole,loose monetary policy amplifies the arbitrage motives of corporate financialization,triggering a large amount of funds to “disconnect from reality”,which has a greater negative impact on industrial investment;(4)loose currency The influence of policy on transactional financialization and industrial investment is not significant;however,loose monetary policy has strengthened the crowding-out effect of non-transactional financialization on industrial investment,that is,loose monetary policy has stimulated corporate participation to a certain extent.The enthusiasm of non-trading financial virtual economy activities such as entrusted loans,shadow banking and real estate investment has strengthened the negative impact on industrial investment.Based on the above research conclusions,this paper argues that for the government management department:(1)strengthen the penetrating supervision of the capital flow of the entity,focusing on preventing the capital of the entity from flowing into the non-transactional virtual economy such as shadow banking and real estate market;(2)Accelerate the establishment and improvement of a long-term mechanism for the real estate market,curb the real estate price bubble,weaken the “siphon effect” of real estate investment on the real economy,reduce taxes and fees,reduce the cost of enterprises,and guide the return of the entity to the main business;(3)improve The forward-looking monetary policy,avoids negative impact on industrial investment and gives full play to the supporting role of monetary policy in the real economy.For enterprises:(1)It is necessary to improve the corporate governance mechanism,rationally allocate financial assets with strong liquidity,and avoid blindly entering non-trading virtual economic fields such as shadow banking and real estate;(2)give play to the positive effects of financial assets on industrial investment and promote the sustainable development of enterprises.