Research On The Impact Of The Financialization Of Real Business Entity On Stock Price Crash Risk

In recent years,with the continuous acceleration of China's economic structural reform,the development of the real economy has gradually entered a period of exhaustion.The overcapacity of real business entity and the declining return on investment have led to a large number of listed companies continuously flowing into the financial sector,one-sided pursuit of financial expansion,and excessive reliance on the benefits of the financial sector,which has led to the "Financialization of real business entity" Severe problems.Moderate financialization will achieve the best allocation of funds between the business sector and the financial sector,which can promote the development of the enterprise's physical industry;but excessive financialization requires that the business department of the enterprise continuously transfer a large amount of funds to the financial sector,resulting in enterprise production and operation The hollowing out of the business seriously affects the enthusiasm of the real industry investment.The real business entity obtains a large amount of investment income through financial investment,causing the business' s market value to deviate from the real value,generating a large number of capital bubbles,and increasing financial risk.Financial work,economic work;Financial stability,economic stability.How to carry out China's financial work in the new era has become a hot issue that has been widely concerned by practical and theoretical circles.The stock market serves as a barometer of economic trends.Will the financialization of physical companies have some impact on the company's future stock price crash risk? Is the financialization of real business entity a financial arbitrage activity for the management to obtain a large amount of investment income in order to increase the company's market value in the short term,or is it to reduce the company's financing constraints and promote the company's main industry investment in cash management activities? This article further examines whether institutional investors will promote management's financial investment activities,thereby increasing the company's stock price crash risk in the future? And divide the research data into listed companies of state-owned entities and listed companies of non-state-owned entities,to explore the relationship between the financialization of real business entity and the stock price crash riskunder different property rights?In this paper,through combing the relevant literature on the financialization of physical enterprises and the risk of stock price crash,the 2008-2018 A-share listed companies of Shanghai and Shenzhen were selected as the research sample,and through empirical testing,the research conclusions were drawn:(1)The financial investment of physical enterprises is A means of management capital arbitrage is significantly positively related to the company's future stock price crash risk.(2)Institutional investor shareholding aggravates the positive correlation between the financial investment of physical enterprises and the risk of stock price crash.(3)Compared with state-owned enterprises,non-state-owned enterprises have greater risks of financial assets,and the positive relationship between the financial investment of enterprises and the risk of stock price collapse is more significant.The results of the study indicate that the entity should rationally analyze the expected return of financial assets,allocate appropriate financial assets,and avoid the high leverage risk of financial assets.The conclusion of the study supports the policy of "finance should serve the real economy".Our research results have certain enlightening implications for corporate executives to control financial risks,make financial investment decisions,and formulate reasonable regulatory systems for financial regulatory authorities.The article is divided into five chapters.The first chapter is an introduction.Based on the economic background of detachment from reality,it briefly introduces the research background,research significance,research ideas and innovative points of the financial investment of entity companies and the risk of stock price crash,and focuses on It has combed the domestic and foreign relevant literatures about the influencing factors of stock price crash risk and the financial investment of physical enterprises.The second chapter is the definition of the concept and the theoretical basis.It defines the theory of financialization of the real economy and the risk of stock price crash and clarifies the research object.On this basis,this article briefly describes this article from the behavioral finance theory,short-sighted theory,signal transmission theory,and principal-agent theory.Theoretical basis.The third chapter is theoretical analysis and research hypothesis.On the basis of the economic background of the over-financialization of the real economy and the analysis of the current status of the stock market,the financial mechanism of the real economy,the risk of stock price collapse,and themechanism of action of institutional investors are elaborated.Research hypothesis.The fourth chapter is empirical testing and analysis.It uses a series of empirical analysis methods such as descriptive statistics,correlation analysis and multiple regression analysis on the research samples from 2008 to 2018.On this basis,multiple regression is performed on the whole sample,and the regulatory variable of institutional investors is added to perform multiple regression again to check the research hypothesis of this paper,and the reliability of the paper's conclusion is improved by adding a robustness test.The fifth part is the research conclusions and policy recommendations,comprehensively summarizes the research conclusions of this article,and proposes that the regulatory department should formulate a reasonable financial supervision system to prevent the financial risks of policy recommendations and put forward the deficiencies of the article.