Research On The Relationship Between Institutional Environment,Financial Asset Allocation And Entity Investment

With the development of the financial market,the financialization of enterprises has become an important trend for the Chinese non-financial enterprises in recent years.While the state strongly encourages and supports the development of the real economy,the allocation of financial assets the relationship between physical investment has become a topic that requires attention and research.This article takes China's A-share non-financial listed companies as the research sample from 2009 to 2018.First,it summarizes the relationship between financial asset allocation and physical investment from the research conclusions of existing literature and based on China's context.:Using financing constraints and operating risks,two factors that are closely related to the internal capital movement cycle as threshold variables,to explore the possible non-linear influence of financial asset allocation on physical asset investment;finally,to explore possible restraints from the institutional level path.The research results show that:(1)Financial asset allocation has a negative effect on physical investment,that is,financial asset allocation will crowd out physical investment.In the cycle of profitable business investment and investment activities,at the beginning,given the limited resources of the enterprise,a large amount of investment in financial assets by the enterprise will definitely reduce the physical investment.Further,when the profit from financial investment activities increases the total capital that an enterprise can invest in,financial asset allocation may have two opposite effects on promoting and crowding out corporate entity investment.The empirical research results verify that the financial asset allocation has a crowding-out effect on physical investment.This conclusion is still valid after considering the impact of the fixed asset accelerated depreciation policy and industry asset reversibility in 2014;(2)Financial asset allocation has a non-linear effect on entity investment under different levels of financing constraints and operating risks.The specific performance are used as threshold variables,and financial assets have a double threshold effect on physical investment;(3)Based on the institutional level,management equity incentives and the external institutional environment can reduce the negative impact of financial asset allocation on physical investment.In terms of equity incentive methods,the negative impact of financial asset allocation on physical investment is still significant in companies,that implement restricted stock incentives.In the sample of companies that implement stock option incentives,although the regression coefficient is negative,it is not statistically significant;using management option incentive ratios and incentive periods to regress,it is also found that stock option incentives can effectively suppress the crowding out effect of financial asset allocation on physical investment;in addition,for companies in regions with a higher degree of marketization,financial asset allocation is important for physical investment The extrusion effect is weaker.The research in this article provides a reference for companies to clarify the relationship between financial assets and physical investment and plan corporate investment decisions rationally.It also provides government with suggestions for the policy formulation and adjustment.