Research On The Influence Mechanism Of The Specificity Of Physical Assets On Financial Risk

Under the background of the economy entering the "new normal",how to correctly understand the impact of corporate potential financial risks on sustainable operations and how to deal with and resolve financial risks have increasingly become the focus of academic attention and research.The factors that form the financial risk of an enterprise mainly come from the internal mechanism of the enterprise and the external economic and market environment.As the internal decision-making of the enterprise,the specific investment of physical assets is an integral part of the internal mechanism,which will affect the financial risk of the enterprise by locking the production and operation relationship.Generally speaking,special physical assets are scarce,difficult to imitate,and irreplaceable in the investment process,which makes them become heterogeneous capital of enterprises,bringing unique competitive advantages to enterprises and enhancing the profitability of enterprises.So,will enterprises with high specificity of physical assets get a positive impact on the profitability of the enterprise due to the locking of the operating relationship? Whether the enhancement of profitability will help companies effectively resolve the financial risks they face requires more in-depth analysis.Based on this,this article focuses on the relationship between the specificity of physical assets and financial risk.Based on transaction cost theory,resource-based theory,and prioritized financing theory,this paper explores the relationship between the specificity of physical assets,profitability,and corporate financial risk.First of all,through literature review and summary of the impact of the specificity of physical assets and profitability on financial risk to find a research entry point;secondly,based on the research assumptions of China ’s A-share(non-financial)listed companies from 2014 to 2018 Regression model,empirical test of the impact of the specificity of physical assets on financial risk and the intermediary role of profitability between the two;finally,the robustness test using the method of lagging one-stage regression of variables proves that the conclusion of this article has a certain degree of robustness Sex.This article focuses on the following research contents: First,the study of the relationship between the specificity of physical assets and financial risk,from a narrow perspective to explore the impact of the specificity of physical assets on the financial risk of the enterprise;Possible paths,to explore the intermediary role of profitability between the two,mainly from the"special physical assets-profitability-corporate financial risk"path exploration and analysis;third,this article introduces the company’s property rights and product market competition The degree index makes an in-depth difference analysis on the impact mechanism of the specificity of physical assets and financial risk based on different property rights and product market competition environment.Through research and analysis,this article draws the following conclusions: With the increase in the specificity of physical assets,the financial risks faced by the enterprise will decrease;profitability plays a part of the intermediary role between the specificity of physical assets and financial risk,that is,the specificity of physical assets High-income enterprises further reduce the financial risks they face through the enhancement of profitability;at the same time,through further analysis,it is found that the specific assets of non-state-owned enterprises and sample enterprises in the product market with strong competition have an impact on financial risk and the intermediary role of profitability The sensitivity is stronger.This article has important theoretical and practical significance for the risk management of enterprises with high specificity of physical assets.On the one hand,it studies the intermediary role of profitability in the specificity of physical assets and financial risk,finds a new path for the relationship between the two,and enriches the research on financial risk and specificity of physical assets.On the other hand,it has certain guiding significance for corporate governance to optimize its own specific physical assets,reduce governance costs,improve governance efficiency,reasonably play a positive role in profitability and obtain market dividends for managing financial risks.