Entity Financialization Of Corporate Capital Configuration Efficiency Impact

This article is based on the current hot issue of the virtual economy,taking China's A-share manufacturing listed companies as an example to study the impact of entity financialization on the capital allocation efficiency of China's manufacturing enterprises in the context of the current deepening trend of China's entity financialization and the country's emphasis on the development of real economy and entity enterprises.In theory,the impact of financial investment activities of entities on enterprises has two sides.On the one hand,appropriate financial investment can reduce financing constraints,reduce dependence on external financing,and thus improve the efficiency of capital allocation;on the other hand,excessive financial investment activities will crowd out industrial investment,resulting in insufficient investment in the main business of the entity.This has caused the entity to “hollow” and ultimately severely curb the overall capital allocation efficiency of the enterprise.Based on the panel data of 693 A-share manufacturing listed companies in China from 2009 to 2015,this paper constructs a time-fixed effect variable coefficient model on the adjusted Wurgler model,which measures the capital allocation efficiency of China's listed companies.Based on this model,the financial indicators of the entity enterprise are added to test the impact of the financialization of the entity on the capital allocation efficiency of Chinese enterprises.The empirical results show that China's entity enterprises have high capital allocation efficiency,and corporate financialization has a significant negative impact on the capital allocation efficiency of China's A-share manufacturing listed companies.Based on the summary of the research status of the impact of entity financialization on the efficiency of corporate capital allocation,combined with the theoretical basis and channel analysis of the impact of entity fina ncialization on the efficiency of corporate capital allocation,this paper provides corresponding enterprises and governments according to the empirical results.Policy recommendations,the main policy implications are that entities should return to the main business of the entity,through financial investment to help the development of the main business,focus on improving their own innovation capabilities and production efficiency,in order to improve the overall capital allocation efficiency of the enterprise,and thus achieve benign and sustainable development.The government should increase policy support for entities,increase the profit rate of the entity industry,encourage the innovation of the entity's main business,strengthen the supervision of the entity's participation in financial investment,and create a good financial environment for the entity's participation in financial investment.Entity companies are over-financialized to promote the development of the physical industry.