Analysis Of The Impact Of Financialization On The R&D And Innovation Of My Country's Pharmaceutical Manufacturing Enterprises

On the one hand,under the background of economic globalization and financial openness,China's financial industry has achieved rapid development.On the other hand,China's economy is currently shifting from a high-speed growth stage to a high-quality development stage.The economic development mode is in a transition period,and the competitive pressure of enterprises increases,the relationship between the financial sector and the real economy is becoming more and more delicate,and the level of financialization of Chinese enterprises is constantly increasing.The National Financial Work Conference emphasized that finance is an important core competitiveness of the country,and it is necessary to "return to its origin" and obey to serve economic and social development.At present,China's economy is at a critical stage of transformation.Leading the transformation and upgrading of the real economy with innovation is the key point that needs special attention.Studying the impact of financialization on R&D innovation of enterprises has provided a very necessary micro-foundation for grasping financial advantages to promote the development of the real economy,deepening the reform of the financial system,and realizing China's innovation-driven development strategy.This article takes Jilin Aodong as an example to study the impact of financialization on corporate R&D innovation.First of all,through the study of literature,the reasons and influences of corporate financialization are expounded,the concepts,measurement methods and related theories of corporate financialization are sorted out,on the basis of which the mechanism of financialization's impact on corporate R&D innovation is summarized.Secondly,to give a detailed introduction to the case,Jilin Aodong's main business focuses on the pharmaceutical industry,which is divided into two major departments,traditional Chinese patent medicine and chemical medicine.In recent years,the revenue of chemical medicine has exceeded that of traditional Chinese patent medicine and the profitability is strong.The enterprise gradually expands its internal and external investment in R&D innovation.It not only seizes the advantages of traditional Chinese medicine products for secondary development,but also vigorously develops chemical medicines to add momentum to the development of the enterprise.Jilin Aodong adheres to the "industry + finance" two-wheel drive development strategy,and its financialization process is mainly based on long-term equity investment in Guangfa Securities,and there is a cross-shareholding phenomenon with Guangfa Securities,which is a long-term and sustainable strategic measure.And the return of financial assets makes a greater contribution to corporate profits.Then,from the perspective of a “reservoir”,the event study method is used to prove investors' positive attitude towards Jilin Aodong's increase holding of Guangfa Securities,and financial analysis verifies the investment income brings a strong rise in operating profit.These show the characteristics of the “reservoir” of financialization of enterprises,based on the Tobin Q equation,verify that the financialization of Jilin Aodong promotes R&D innovation;from the perspective of investment substitution,Jilin Aodong's shareholding in Guangfa Securities is stable,and it do not increase its holdings of financial assets in large proportion due to the high rate of return on financial investment,and do not restrain its investment in corporate R&D innovation.Its more purpose is to increase company funds through investment income,increase product development and research,pay attention to industry-related companies,and obtain products with development potential through various methods such as equity acquisitions and cooperation to meet the challenges of the pharmaceutical manufacturing industry upgrade;from the perspective of arbitrage speculation,Jilin Aodong has a high sales margin and stable financial asset holdings.Compared with operating net profit,financial investment returns are more volatile,so the opportunity cost of arbitrage through financialization is high.In recent years,the gap between the operating profit rate of enterprise and the profit rate of financialization has narrowed or even surpassed,and Jilin Aodong has a low leverage ratio which means it has not borrowed a large amount of debt to increase its financial assets,so enterprise do not have the motivation for arbitrage speculation.Finally,through the enlightenment obtained from the case study,it is suggested that Chinese enterprises should correctly view the positioning of financialization assistance for the development of the real economy,prevent the risks brought by financialization to the operation of enterprises,enhance the strength of R&D innovation,and deepen the main industry for reference.