Study On The Effects Of Corporate Financialization On The Core Performance

In recent years,China's population and resource dividends have gradually faded,which has caused the cost of traditional entity enterprises to continue to rise under the extensive production model.Later,it experienced the financial crisis of 2008,and its extensive and continuous impact caused the market demand in China to shrink continuously.At the same time,China's financial and real estate industries have developed rapidly.Market funds have poured into these two high-yield industries,and the financialization of our economy has continued to deepen.In this environment,the return on industrial investment in the entire entity industry is getting worse.Based on this hot issue,this article starts from a micro perspective and conducts a detailed analysis of the relationship between corporate financialization and core performance.Corporate financialization may have a crowding-out effect or a cistern effect on core performance.This article takes 2008-2019 A-share non-financial and non-real estate companies in Shanghai and Shenzhen stock markets as a research sample,and constructs financialization indicators based on the balance sheet and income statement.The fixed effect model is used for empirical regression.In the basic analysis,the crowding-out effect of corporate financialization is greater than the cistern effect,and a large amount of investment in financial products will seriously damage the company's core performance.In order to deeply understand the internal and external factors that exist between the two,this paper uses the moderating effect analysis to conclude that the crowding-out effect of corporate financialization will increase with the increase in monetary policy easing,and increasing equity concentration will weaken financialization crowding-out effect on core performance.Later,in order to find out the transmission mechanism of corporate financialization and core performance,the application of mediating effect analysis found that physical capital investment is part of the mediating variable of the impact of corporate financialization on core performance,and it accounts for a relatively large part of the transmission mechanism.Thisarticle also carried out corresponding expansion studies.From the perspective of industrial differences,the secondary industry enterprises,which are important representatives of entity enterprises,exhibit higher crowding-out effects than the primary and tertiary industry enterprises.From the perspective of stock market volatility,companies show a stronger crowding-out effect during the stock market oscillating period,while the crowding-out effect is weakened during the stock market stabilization period.From the perspective of the nature of property rights,the crowding-out effect of state-owned enterprises is more obvious than that of non-state-owned enterprises.Finally,robustness tests such as controlling endogeneity and replacing explanatory variables are used to enhance the reliability of the research conclusions.This article obtains evidence of financialization of the entity economy from a micro perspective.Therefore,the solution to the negative impact of corporate financialization on core performance is taken as a starting point,and not only solutions are provided from the perspective of micro enterprises themselves,but corresponding suggestions are also made from the perspective of macro industries and policies.This has important reference value for the government to guide the funds to "move from the virtual realm to the entity realm" and promote the healthy operation of China's entity economy.