The Impact Of Enterprise Heterogeneity On The Degree Of Financialization About The Enterprise

China is undergoing a period of economic transformation,and some domestic industries are facing severe overcapacity.Therefore,many non-financial enterprises have shifted from the main physical business to the virtual economy.On the one hand,the deepening of financialization is conducive to solving the investment and financing problems of non-financial enterprises,and on the other hand,it also has adverse effect on non-financial enterprises.In this background,the research of this paper will take the Shanghai and Shenzhen A-share listed companies from 2006 to 2018 as the research object to study the degree of financialization about non-financial enterprises and the factors of enterprise heterogeneity affecting the degree of financialization.This paper will be carried out from the following five aspects: First,the concept of the degree of financialization is comprehensively defined from the macro and micro levels,and the financial indicators and enterprise heterogeneity indicators studied by previous scholars are sorted out.The second is the use of behavioral finance theory to theoretically study the impact of the three major companies' heterogeneity indicators on the degree of corporate financialization.The third is to establish index systems of enterprise heterogeneity and corporate financialization.Enterprise heterogeneity indicators include enterprise attributes,financial indicators,and innovation indicator.Among them,the enterprise attributes include eight sub-indicators.The principal component analysis method is used to extract three principal components,named the development factors,structural factors,and asset factors.Financial indicators include four sub-indicators: asset-liability ratio,operating income growth rate,financing cost ratio,and return rate on total assets.The innovation indicator includes the indicator of innovation ability.The indicators of the degree about financialization of enterprises include three indicators,they are financial asset holding rate,financial investment rate and financial return rate,and then the paper conducts a comparative analysis about the financialization degree of enterprises between traditional industries and emerging industries.Fourth,the effect of the heterogeneity index on the degree of financialization of non-financial enterprises was tested through multiple linear regression and a comparative analysis is conducted.The fifth is to provide suggestions for the steady development of non-financial enterprises based on the results of theoretical and empirical research.The empirical results in this paper indicate: Firstly,the overall degree of financialization of Chinese non-financial enterprises is not very high.The financial asset holding rate of Chinese non-financial enterprises remains below 10%,the financial investment rate remains below 35%,and the financial return rate is relatively unstable.Secondly,the impact of enterprise heterogeneity indicators on the degree of corporate financialization varies.The development factors,structural factors,and asset factors of corporate attributes all have an impact on the degree of financialization.The development factors and structural factors of corporate attributes have a greater impact.The specific combing is as follows: the larger the development factor of the enterprise attribute,that is,when the enterprise is large(the enterprise is in the mature period)or when the enterprise is a state-owned enterprise,the financial asset holding level and financial investment level of the enterprise are low,but the financial investment income is higher.The larger the structural factor of the corporate attribute,that is,when the size of the board of directors is large and the board structure of the company tends to be dispersed(the board seats of the company are not mainly concentrated in a small number of original shareholders),the degree of financialization is higher.The asset factor of corporate attributes often has a certain correlation with the industry.Enterprises with a large proportion of tangible assets have a lower degree of financialization,especially in terms of lower financial investment returns.The asset-liability ratio and the return rate on total assets of financial indicators have a significant impact on the degree of financialization about non-financial enterprises.The enterprises with a higher asset-liability ratio have a lower degree of financialization.Because companies with a higher debt ratio have almost no idle funds in financial investment.Companies with a high return rate on total assets often engage in active financial investment activities,which leads to higher levels of financial asset holding rate and financial investment rate,but causes a lower level of financial return rate.The growth rate of operating income and financing costs have little effect on the degree of financialization.There is a significantly negative correlation between innovation ability and the degree of financialization.Increasing investment in intangible assets to enhance the innovation ability of enterprises will have a crowding-out effect on financial investment.Thirdly,the economic cycle and industry classification significantly affect the degree of financialization about non-financial enterprises.After the financial crisis in 2008,the financialization of non-financial enterprises slowed down significantly.The financialization of non-financial enterprises in emerging industries is evidently lower than non-financial enterprises in traditional industries.Finally,the M2 growth rate and the GDP growth rate present a significantly negative correlation with financialization of non-financial enterprise.When the growth rate of M2 is high,the market has more liquidity,and the degree of financialization about enterprises is lower,which helps the development of the real economy.When the GDP growth rate is high,non-financial enterprises will mainly focus on the main business to seek more profits,and the degree of financialization about non-financial enterprises will decrease.Last but not least,this paper puts forward relevant suggestions from the perspectives of the enterprises and the government.For enterprises,a reasonable degree of financialization will help enterprises to solve investment and financing problems on the premise of operating their main businesses.Therefore,non-financial enterprises with investment and financing needs and a low level of financialization can improve their board structures(properly increase the proportion of independent directors),reduce the asset-liability ratio(such as a reasonable reduction of corporate liabilities),or increase the return rate on total assets(enhance the profitability of the company's main business)and other means to improve the financialization of the enterprises.Conversely,for non-financial enterprises which are high enough in financialization or even abandon their main businesses,they can improve the structure of the board of directors(appropriately reduce the proportion of independent directors),increase the asset-liability ratio(reasonably increase the company's liabilities),increase corporate innovation investment,etc.From the perspective of the government,owing to differences in the degree of financialization between emerging industries and traditional industries in China,the government should issue different regulatory policies based on the degree of financialization of different industries to coordinate the financialization gap and promote development between emerging and traditional industries.At the same time,the government can adjust the growth rate of M2 through monetary policy so that the degree of financialization of non-financial enterprises is at a reasonable level,and ultimately promote the common prosperity of the real industry and the financial industry.