Impact Of Operational Income On Non-monetary Financial Assets Under The Background Of Financialization

In 2016,the net profit of China's state-owned enterprises was 2,235.9 billion yuan,and the corresponding financial industr's net profit reached 2,137.6 billion yuan.The financial industry's profits were equivalent to the profits of national enterprises.In 2017,the added value of China's financial industry accounted for more than the developed countries.Since the beginning of 2018,relevant departments have issued a series of "strong supervision" measures.Developing the financial markets,strengthening supervision,strengthening legislation and corporate governance have become more and more important in the policy mix.Over the past 30 years,the phenomenon of economic financialization has become an increasingly common issue.This paper starts from the intensified development trend of financial investment in real economic conditions and the potential problems and risks behind it.After reading the relevant research background,this paper integrates the literature and theoretical analysis,and finds that the current research is concentrated on the macro level.At the micro level,there are already many theoretical foundations.However,in the past,relevant research in the domestic literature is based on traditional financial indicators.Business activities and financial activities cannot be clearly defined and separated,such as using the ROE indicator for a business activity.In fact,the net assets in the ROE contain financial net assets,and the net profit in the ROE includes financial investment income.The relationship between business activities and financial activities derived from that kind of study is not reliable.This study is based on the separation criteria of the two activities based on the Penman-Nissim analysis framework(2001,2009),which basically separates the two activities clearly(the interest income from monetary funds cannot be accurately separated from the total interest income,so non-Monetary and financial income cannot be separated,but financial assets and operating income can be effectively distinguished),and the proportion of holding financial assets to total assets(Demir,2009)is used as a measure of financialization.With reference to the ideas in the research of Orhangazi(2008),the model was designed in reverse,and the model takes into account the substitution effects and the surplus effects proposed by Davis(2013),Zhang Wei(2012)and Da Luz et al.(2015).The substitution effect under negative correlation refers to that the higher the operating efficiency of listed companies,the lower the proportion of financial assets holdings in total assets.This is because that under certain capital constraints,the company will allocate funds for higher returns,which is to allocate funds to operational assets to maximize shareholder value.The surplus effect,corresponding to the positive correlation,is that when the listed company's operating efficiency is higher,the proportion of financial assets held by the company to the total assets is higher.This is because that under realistic economic conditions,the company has allocated enough resources to the operation,but there is still a certain surplus.In order not to make the funds idle,the company will increase investment in financial assets.The model established in this study effectively considers the substitution effect and the surplus effect,pays attention to the triggering conditions of the two effects,and integrates the two into a unified interpretation model.After that,the non-financial listed companies of CSI A-share,during 2012 to 2017,were used as samples to conduct empirical analysis and robustness test,and the four types of financial assets in non-monetary financial assets were also analyzed by regression analysis.The results show that the proportion of financial assets held by non-financial listed companies has a curved relationship with the increase of operating rate of return,it decreases first and then increases.The non-monetary financial assets,the financial assets held for trading,the entrusted loans and bank wealth management funds,and the long-term equity holdings of financial institutions have the similar relationship as financial assets.The proportion of investment real estate has no such relationship with the operating yield.This paper explains that is because of the effect of the commodity attributes of investment real estate under the downward pressure of the economy.Finally,the content of this article is divided into five parts.The first part of the introduction mainly introduces the research background of the deepening financialization,and the theoretical and practical significance of this research topic.Then the paper briefly introduces the research ideas and methods.The second part is a literature review.It mainly combs the relevant research on the macro-level and micro-level of financialization,and sorts out the related research on the financialization index,the proportion of financial assets held,in this paper.The research direction of this paper are determined through the literature review results.Besides,possible innovations are also discussed in this part.The third part is about research design.On the basis of the literature review,the theories and ideas adopted in this paper are explained in more detail,and the relationship between the variables related to the interpretation model is more logically demonstrated.Finally,a reasonable assumption of the model is made.The fourth part is an empirical analysis.The main processing steps and important results of the empirical data were recorded,and the statistical results of the model were explained in combination with the theoretical basis in the research design,and the experimental hypothesis was verified.The fifth part is the conclusion.The empirical regression results of the model and the shortcomings in this study are summarized.The main shortcoming of this paper is that the main research object of this paper is the non-monetary financial assets,but under the interest income subject,the interest of monetary funds cannot be separated from the interest income generated by long-term bond investment,so the income of non-monetary financial assets cannot be calculated.The total return of financial assets can only be used as a control variable.