Corporate Financialization,monetary Policy Looseness,and Corporate Employment Absorption Capacity

Under the background of the rapid expansion of productivity,the effective market demand is insufficient,so the return on investment of the real field continues to decline,while the financial field generally has a high return on investment.Therefore,a large number of real enterprises have entered the financial field to seek profits,and the financialization of non-financial enterprises has become a common phenomenon.However,the excessive pursuit of short-term benefits brought by financialization can easily lead to“short-sightedness”,and neglect the sustainable development of the production and operation of enterprises,which may adversely affect employment.Employment is the foundation of people’s livelihood,the source of wealth,and is related to social stability.Therefore,this paper discusses the impact of the financialization of my country’s non-financial enterprises on the employment absorption capacity of non-financial enterprises based on the realistic background of our country,which has practical guiding significance for the government to solve the dilemma of non-financial enterprises "from real to virtual" and to improve employment policies.Using a sample of A-share listed companies from 2008 to 2019,this paper elaborates on the influence and internal mechanism of financialization affecting enterprise’s ability to absorb employment from the perspective of capital reserve motivation and profit-seeking motivation based on the pressure theory of behavioral finance,corporate control market theory,principal-agent theory,labor demand theory and precautionary savings theory.Further,it verifies whether the macro-monetary policy can effectively play the policy effect of regulating micro-enterprise behavior.This article draws the following conclusions:(1)On the whole,the financialization of non-financial enterprises has weakened enterprise’s ability to absorb employment.(2)Financialization driven by different motivations has different effects and paths on enterprise’s ability to absorb employment.Long-term financialization weakens enterprise’s ability to absorb employment by slowing down capital accumulation;short-term financialization improves enterprise’s ability to absorb employment by easing financing constraints,and the first half of which is positively regulated by monetary policy looseness.(3)Further,when the capital intensity is lower,the property rights are non-state-owned,or belong to the eastern region,long-term financialization of enterprises has a stronger inhibitory effect on enterprise’s ability to absorb employment.When the capital intensity is higher,the property rights are non-state-owned,and belong to non-eastern regions,short-term financialization of enterprises has a stronger promoting effect on enterprise’s ability to absorb employment.