Research On Cash Flow Fluctuation,Corporate Financialization And Corporate Value

The decline of the manufacturing industry in developed countries is related to financial speculation.With the wave of financialization and the decrease in the return on physical investment,more and more manufacturing enterprises are keen on capital operation,and the phenomenon of financialization of small and medium-sized manufacturing enterprises is particularly prominent.At present,China's manufacturing industry is facing transformation and upgrading.Small and medium-sized manufacturing enterprises are the key to the transformation of manufacturing industry.Their financial behavior will inevitably affect the transformation of manufacturing industry.Therefore,it is particularly important to explore the causes and effects of financialization of small and medium-sized manufacturing enterprises.In recent years,the tight profitability of physical enterprises and the changing external environment have caused small and medium-sized manufacturing companies to face increased uncertainty.These uncertainties will be reflected in cash flow fluctuations.How does cash flow fluctuations affect corporate financialization? The ultimate goal of an enterprise is to maximize the value of the enterprise.The enterprise value is the best indicator to reflect the effect of financial decisions.Will the financialization of small and medium-sized manufacturing enterprises damage the enterprise value?The article uses sample data of small and medium-sized manufacturing companies listed in Shanghai and Shenzhen from 2010 to 2018,through regression models and industry status analysis to explore the impact of cash flow fluctuations on corporate financialization and the impact of corporate financialization on corporate value.The main conclusions are:(1)After 2009,the cash flow fluctuations of small and mediumsized manufacturing enterprises showed a downward trend.Through grouping,it was found that the cash flow fluctuations of the high financing constraint group and the highly competitive industry group were relatively smooth;The trend shows that the size of financial assets of high-competitive industry groups and low-competitive industry groups is relatively close,and the size of financial assets of high-financing constrained companies is smaller than that of low-financing constrained groups;the value of small and medium-sized manufacturing companies fluctuates greatly,and most small and medium The enterprise value of manufacturing enterprises is at a low level below 0.(2)Cash flow fluctuations will lead to a reduction in the scale of corporate financialization.Further research found that the negative impact of high-competitive industry group cash flow fluctuations on corporate financialization is more significant.The financing constraint group found that low financing constraint corporate cash flow fluctuations The negative impact of financialization is more significant.In addition,the study also found that the motivation for companies to hold financial assets is not the high returns of financial assets,but the avoidance of non-systemic risks.Low-competitive industry groups have a stronger motivation to hold financial assets to avoid non-systemic risks.(3)The financialization of small and medium-sized manufacturing companies has a negative impact on enterprise value.,and the difference between the financialization of different types of companies on corporate value is smaller;In addition,the study found that the high returns of corporate financial assets are harmful to the value of the company,but the high profitability of financial assets constrained by high financing has an effect on improving the value of the company,and the high returns of other types of corporate financial assets are harmful to the value of the company.Based on the above conclusions,the article recommends:(1)enterprises should allocate financial assets reasonably and have long-term development strategic goals;(2)the government should strengthen financial supervision of small and medium-sized manufacturing enterprises,expand financing channels,improve financial market systems and improve investment surroundings.