Financial Background Of Executives And Financialization Of Enterprises

In recent years,with the rapid development of the financial market and the capital market,the growth rate of the real economy in China has slowed down,and the national economy has become increasingly weak.Based on the theories of high-level echelon theory,principal-agent theory,social capital theory and overconfidence theory,this paper selects Chinese A-share listed companies from 2009 to 2017 as samples to test the relationship between senior executives' financial background,entity enterprise financialization and the mechanism of overconfidence.The conclusion shows that the financial background of senior executives has a significant positive effect on the financialization of entity enterprises.The mediating variable of overconfidence plays a part in the mediating effect of the financial background of senior executives on the financialization of enterprises,which proves the existence of the mechanism of overconfidence.In other words,the financial background of senior executives promotes the financialization of enterprises by improving the degree of overconfidence of senior executives.Compared with the enterprises in the western region,the financial background of the executives of listed enterprises in the eastern region has a significantly higher positive effect on the financialization level of the enterprises.Compared with non-state-owned enterprises,the financial background of senior executives of state-owned enterprises has a significantly higherpositive effect on the financialization level of their enterprises.Finally,based on the above research conclusions,this paper puts forward relevant Suggestions from the government level,enterprise level and individual level respectively,which play a certain role in promoting the government's strong supervision and reasonable guidance of enterprises,the sustainable development of enterprises themselves and the long-term progress of execttives' career.