Research On The Influence Of Industrial Policy On Financialization Of Real Enterprises

In recent years,China's economy has appeared a remarkable trend of "de-solidification ",among which the important embodiment of micro-level is the financialization of entity enterprises,that is,the enthusiasm of entity enterprises to invest in financial assets is constantly rising,and the proportion of financial channel profit to enterprise profit accumulation is constantly rising.A large number of studies have found that the real enterprise financialization not only harms the long-term development of the enterprise itself,but also destroys the smooth operation of the economy and society.Under this background,It has become an important topic for academic research to explore the influencing factors of enterprise financialization and seek ways to restrain enterprise financialization.Many studies have pointed out that the sustained downturn in the real economy is the key to financialization Motivation.Therefore,the key to restraining the financialization of real enterprises is to boost the real economy.As an important way for the government to boost the real economy and promote the supply-side structural reform,the effect of industrial policy is controversial.Therefore,the influence of industrial policy and how to influence the financial trend of entity enterprises need to be further studied.Using the data of the 11 th Five-Year Plan and the 12 th Five-Year Plan period,this paper examines the influence of industrial policy on enterprise financialization and its mechanism based on the sample of non-financial and real estate industry in China's A-share market,and further explores the economic effect of this impact.It is found that(1)the degree of financialization of industrial policy-supported enterprises is significantly lower than that of non-supported enterprises.This conclusion is still true after robustness tests using dual differential model(DID),propensity score matching(PSM),heckman two-stage model and fixed effect model,etc.(2)It is found that the effect of industrial policy restraining the financialization of enterprises is more significant than that of private enterprises,less competitive industries and less efficient local governments in different situations,which indicates that the effect of industrial policy is boundless;(3)Further exploring the path behind the role of industrial policy in the financialization of enterprises shows that industrial policy stimulates real capital investment and innovation investment by increasing the return rate of industrial capital investment and reducing the risk of business operation,It shows that the increase of industrial investment is an important way for industrial policy to restrain the financialization of enterprises;(4)based on the expansion of economic consequences of the test shows that the industrial policy on the financialization of enterprises not only promote the development of the main business,but also improve the level of innovation output of real enterprises.The possible contribution and significance of this paper are as follows:(1)This paper systematically examines the influence and mechanism of industrial policy on the financial investment of real enterprises,and further explores the difference of this influence in different situations and its economic effect,which not only enriches the literature on the related fields of enterprise financialization and industrial policy,but also expands the research framework of "macro-economic policy and micro-enterprise behavior ".(2)The paper finds that industrial policy can effectively restrain the financial investment impulse of real enterprises and promote the development of real economy,which not only provides empirical evidence for the effective implementation of industrial policy,Government departments from the implementation and improvement of industrial policy perspective to restrain the economy "from the reality into the virtual" provided useful enlightenment.