Financialization And Real Option Value

With the deepening of financialization,the changes brought about by this non-traditional form of investment have a profound impact on enterprises.In this context,this article attempts to explore the impact of financialized investment behavior on the value of real options,so as to provide some suggestions for promoting the healthy and long-term development of the real industry.This article takes all non-financial listed companies from 2005 to 2018 as samples,constructs a Tobit regression model,empirically tests the relationship between listed companies' financial investment behavior and real option value,and conducts rich heterogeneity analysis.The research in this paper finds that the financial investment behavior of listed companies has significantly reduced the value of real options,which is reflected in the decline in upside potential of performance and the increase in downside risk of performance.After the robustness test,the conclusion is still valid.For companies with high agency costs and poor external financial market environment,the negative impact of financialization on the value of real options has increased.In addition,from the perspective of different types of enterprises,the negative impact of the financialization of state-owned enterprises on the value of real options is more obvious than that of non-state-owned enterprises.The conclusion of this paper shows that the state should work hard to promote the transformation and upgrading of the real economy,and improve the return on industrial investment.Relevant government departments should further improve the external financial market environment and strengthen financial supervision.The entity itself should focus on the traditional production and operation field rather than the financial field,rationally allocate financial assets,further improve the effectiveness of the company's internal governance,and strive to improve the long-term profitability of the enterprise.