Research On The Impact Of Corporate Financialization On The Long-term Performance Of Enterprises

In recent years,our country has presented significant financialization characteristics.Because of the gap between the capital gains and the industrial investment return,a large number of real enterprises have invested capital in high-return industries such as finance.The average size and proportion of financial assets of China’s non-financial listed companies have risen rapidly,which caused the wide attention of theoretical and practical circles.On the other hand,ownership concentration,as an important indicator to measure the effect of corporate governance,plays an important role in the process of influencing the allocation motivation of corporate financialization and the financial economic consequences.Therefore,from a longterm perspective,this thesis studies the impact of entity financialization on long-term performance,and tests the moderating effect of ownership concentration.There are two main innovations in this thesis:(1)from the perspective of research,this thesis focuses on the influence of corporate financialization on corporate long-term performance,and further identifies whether there is a role path of R&D investment.The longterm effect is mainly manifested in the value of the enterprise and the sustainable competitiveness of the enterprise.(2)Introducing the variable of equity concentration to verify whether it has a moderating effect on the relationship between financialization and long-term performance,and supplement the research on the impact of corporate governance on corporate financialization and corporate performance.After summarizing relevant literature and analyzing and reasoning basic theories,this thesis argues that there may be two motivations of financialization,one is capital reserve another is financial speculation,which will produce "reservoir" effect and "crowding out" effect on enterprises’ long-term performance.The financialization motivated by capital reserves can alleviate the financing constraints of enterprises,feed back the main business investment,improve the investment efficiency of enterprises,and is conducive to the improvement of longterm competitiveness and the growth of future profitability of enterprises;the financialization of speculative motives traps enterprises in the vicious circle of "allocation of financial assetsshort-term performance growth-allocation of financial assets",squeezes physical investment and R&D investment,aggravates the hollowing out of main business,and hinders the long-term sustainable development of enterprises.The influence of financialization on long-term performance of enterprises ultimately depends on the relative size of the two effects.Different degree of ownership concentration may lead to different principal-agent problems,which will affect the motivation of financialization allocation and then affect the results of financialization.Therefore,this article takes Chinese A-share listed companies from 2010 to 2020 as research samples,on the basis of theoretical analysis,study variables were set up,descriptive statistics and correlation analysis were carried out,fixed effects panel regression model was established,baseline regression,channel identification,moderating effect and heterogeneity test were carried out.After passing endogeneity test and robustness test,the conclusion is as follows:(1)Financialization has a significant positive correlation with long-term corporate performance measured by tobin’s Q,and holding financial assets will crowd out R&D investment and weaken the positive impact on long-term corporate performance.(2)The role of financialization and long-term performance varies with different industries and property rights.Compared with non-manufacturing,the positive impact of the financialization of manufacturing enterprises on the long-term performance of enterprises is relatively small,and the impact of the financialization of state-owned enterprises on the long-term performance of enterprises has not played a significant role in promoting the long-term performance of enterprises compared with non-state-owned enterprises.(3)Ownership concentration has a negative moderating effect on the impact of financialization on long-term corporate performance.The study of this thesis provides empirical evidence of the influence of financialization on the real economy at the micro level,and has certain reference value for the government to guide and supervise correctly and enterprises to make correct decisions.