Research On The Impact Of Financial Asset Allocation On Business Performance

In recent years,China's economic development has entered a structural transformation period.Under the influence of various adverse factors,the operating profit margin of entity listed companies generally declines.In contrast,listed companies in the financial industry maintain a high rate of return,with a large number of listed entity companies entering the financial industry by adding more financial assets to their balance sheets for high profits.With the development and innovation of various financial products,more and more entity listed companies began to increase their capital and allocate entrusted trust financial products,bank financial products and investment in financial institutions holding shares,and the proportion of financial assets they formed was also on the rise.So,is there a correlation between the general decline in operating performance and the behavior of increasing capital and allocating financial assets? If so,will the correlation be affected by the different types of financial assets they allocate? Will it show differences due to the influence of macro monetary policy and the company's own characteristics?This paper,based on A-share manufacturing data of Chinese listed from 2008 to 2018,uses a fixed-effect model for empirical test.The results show that:(1)The impact of the allocation of financial assets by manufacturing listed companies on corporate performance is not a single promotion or hindering effect,but it varies with the type of financial assets allocated and operating performance.In the short term,the allocation of market financial products,financial management products and trusts and financial equity investment can play a role in boosting the operating performance of enterprises.There is still a positive effect on allocation of trading market financial products and financial equity investment to performance of enterprise,with regression coefficients of 0.02 and 0.267 respectively.On the contrary,holding investment property and financial management products and trusts will have a significant negative impact on the business performance of enterprises,and the regression coefficients are-0.224 and-0.097 respectively.Compared with state-owned listed companies and non-financingconstrained listed companies,non-state-owned listed companies and non-financingconstrained listed companies have a stronger response to the financial asset allocation behavior of enterprises,and their financial asset allocation behavior has a more significant impact on the business performance of enterprises.(2)The adjustment effect of monetary policy is also reflected in different financial assets.In the short term,the loose monetary policy can enhance the positive promoting effect of the total financial asset allocation on the business performance.From the perspective of subdivision,loose monetary policy has enhanced the "reservoir" effect of the market financial products,promoting the improvement of short-term business performance of enterprises,and strengthened its negative impact on the production and business performance of enterprises in the long term.For investment property,the loose monetary policy will not have a significant impact on the relationship,but will strengthen the hindering effect in the long term.When the explanatory variable is financial management products and trusts,the loose monetary policy environment will have a greater positive promoting effect on the relationship no matter whether the explained variable is long-term operating performance or the short-term.Compared with financial management products and trusts,the positive promoting effect of shareholding investment in financial equity investment on the operating performance of enterprises will be weakened in the short term and enhanced in the long term under the loose monetary policy environment.