Research On The Impact Of The Financialization Of Entity Enterprises On Economic Fluctuations In China

Due to the high profit margin of the financial industry,more and more non-financial enterprises allocate their own funds to the financial market,and the entity enterprises are becoming more and more financial.Moderate financialization of entity enterprises can reasonably allocate idle funds,help the development of main business and industrial transformation,and better serve the real economy,so as to alleviate economic fluctuations;Excessive financialization of entity enterprises will increase enterprise leverage,cause greater financial pressure and risks to enterprises,hinder industrial transformation and aggravate economic fluctuations.At present,most of the academic research on the influence of the financialization of entity enterprises focuses on the enterprises themselves,and there is less research on the influence of the financialization of entity enterprises on economic fluctuations.It is of great theoretical and practical sense to research the possible influence of the financialization of entity enterprises on economic fluctuations,and put forward countermeasures to curb the excessive development of the financialization of entity enterprises and stabilize China’s economic fluctuations.Firstly,this dissertation theoretically studies the relationship between the financialization of entity enterprises and economic fluctuations in China.It is found that the moderate financialization of entity enterprises can slow down the economic fluctuations,and the excessive financialization of entity enterprises will aggravate the economic fluctuations.Secondly,it describes the current situation of the financialization and economic fluctuation of China’s entity enterprises.During the sample period,the financialization degree of China’s entity enterprises generally showed a gradual upward trend,and the economic fluctuation showed a "few" trend.According to the correlation between the two,it is preliminarily judged that there is a nonlinear relationship between the financial melting of entity enterprises and economic fluctuation.Then,based on the theoretical hypothesis,this dissertation constructs a nonlinear model for empirical test.The research shows that the financialization of entity enterprises has a significant "U" impact on economic fluctuations during the sample period.In terms of regions,the "U" effect of entity enterprise financialization on economic fluctuation in eastern China is significant,there is no significant correlation between the two in Central China,and the negative impact of entity enterprise financialization on economic fluctuation in Western China is significant.In terms of branch types,the financialization of state-owned enterprises can slow down economic fluctuations,and the impact of financialization of nonstate-owned enterprises on economic fluctuations shows a "U" relationship.The mechanism test results show that the financialization of entity enterprises has a "U" shaped impact on economic fluctuations mainly through three channels: industrial investment,industrial structure and enterprise leverage.Finally,in order to prevent the excessive financialization of entity enterprises and slow down the economic fluctuations,the following policy suggestions are put forward: perfect the financial market system and insist that finance better serve the entity economy;Enhance the investment efficiency of enterprises and promote the combination of industrial capital and financial capital;Promote the rational allocation of financial resources among industries and push forword the transformation of industrial structure;Strictly monitor the leverage ratio of entity enterprises and prevent financial and financial risks.