Research On The Motivation And Effect Of Financialization Of Jingwei Textile Machinery Company Limited

China’s economy is experiencing a dynamic shift,and the international market environment is also changing.The development of manufacturing industry faces some problems.The production costs are rising,the prices of raw materials and labors are rising,the production capacity of enterprises is surplus,the profit level is reduced,and the future development of real enterprises is facing great pressure.However,China’s financial industry is developing better and better in the market economy environment,the profit margin of the financial industry is at a high level,and the financial asset investment can obtain a higher return.In this context,more and more real enterprises try to invest in financial assets,showing the trend of financialization.The case enterprise selected in this thesis is Jingwei Textile Machinery Company Limited.Firstly,this thesis analyzes the background of the financialization and the relevant research of previous scholars,and constructs the research framework of this paper after induction and summary;Secondly,it defines the concept of "enterprise financialization" and expounds the relevant theories used in this thesis;Then it expounds the current situation of the financialization of Chinese enterprises;Then it analyzes the process,motivation and effect of the financialization of the case company;Finally,draw conclusions and put forward suggestions.This thesis holds that as far as the case company is concerned,its motivation mainly includes the following aspects: seeking new profit growth points,pursuing high returns in the financial industry and realizing diversified strategic layout.Through the study of the effect of financialization,from a positive point of view,through financialization,enterprises have improved the overall financial performance level of the group,obtained high investment income,formed a diversified pattern of enterprise development,and obtained the synergy of enterprise development;On the negative side,due to the attention and investment of enterprises in financial asset investment,the level of industrial investment is not high,and enterprises are also facing the risk of failure in financial asset investment.The unique risks from the financial trust business sector have a negative effect on enterprises.According to these research conclusions,the following research suggestions are put forward from the two aspects of enterprise and government.On the one hand,from the enterprise level,first,we should reasonably choose the type of financial asset investment;Second,appropriate allocation of financial assets to avoid over investment;Third,we should actively prevent risks from financial business;On the other hand,from the government level,one is to create a better business environment for real enterprises,and the other is to strictly restrict the financial asset investment behavior of enterprises.