Research On The Financial And Market Effect Of Financialization In Non-financial Enterprises

With the intensification of the reform and opening up of the financial industry,a large number of non-financial companies have increased their financial investment proportion by participating in financial institutions and stock investments.The proportion of fixed asset investment has continued to decline.The financialization of such non-financial companies is gradually become the only choice for enterprises seeking diversified development.In practice,a large number of non-financial enterprises have encountered many problems in the process of financialization: for example,the business relevance of the financial institutions they invest in is not strong,false capital injection or cyclic capital injection,and benefit transmission.This will easily cause the cross-transfer of industry risks and financial industry risks,and at the same time further accelerate the process of the real economy turning to the virtual economy.Therefore,whether it is necessary for non-financial companies to conduct financialization,and what impact financialization can bring to enterprises has become an issue of great concern for corporate financialization research.In order to solve the above problems,this paper reviews the current practice of corporate financialization,and analyzes the motivations and models of corporate financialization based on the theory of signal transmission and principal-agent,and analyzes the mechanism of the impact of financialization on non-financial enterprises.The typical case of Harbin Investment company’s financialization,analyzing its financialization causes,models,and processes.Based on the correlation between financialization rates and financial indicators,it analyzes financialization for nonfinancial enterprises from market response,corporate performance,and financial risk of company.Further analyze the impact of financialization on shareholder value and financial situation.The conclusions of this thesis are as follows: First,in the short term,the behavior of Hatou shares in financial institutions in the short term can enhance the volatility of stock prices,bring about a positive announcement effect,and realize shareholder value appreciation.Second,in the long term,when Hatou is under moderate financialization(financialization rate is 40%-60%),the company’s performance has been greatly improved,but after excessive financialization(financialization rate exceeds 60%),its performance has changed from rising to a straight decline;finally moderate financialization can improve the long-term debt-repaying ability of Harbin Investment company and diversify certain financial risks,but after excessive financialization,financial risks increase,and enterprises still face higher financial risks.Based on this,this thesis gives targeted policy recommendations: First,ironworking also needs to be hard.Financialization of non-financial companies should actively nurture financial returns to the main business.For Harbin Investment company,the benefits of participating financial institutions is far more than holding;Second,we should strengthen the supervision of corporate equity participation in financial institutions;Finally,we should further improve the physical business incentive mechanism.The possible incremental contributions of this thesis are: First,the internal relationship between financialization and business performance is combed through theoretical and correlation analysis;second,based on empirical research and case analysis of Harbin Investment company,the relationship between financialization of non-financial companies is explored.The impact of the company’s short-term stock price and long-term operating performance has been analyzed.This thesis enriches the research results and has certain reference value for improving the relevant financial regulations of non-financial enterprises.However,due to the incomplete disclosure of relevant information of enterprises,the research results of this thesis are inevitably limited.