Research On The Impact Of Financial Assets Allocation Of Listed Companies On Firm Entity Investment

At present,China has switched from high-speed growth to high-quality development,and the development trend from reality to fiction has been highly valued by the central government.An important manifestation of the transformation from real to virtual is that the proportion of financial assets of enterprises increases and the degree of financial assets allocation increases,while the willingness and motivation of investment entities continue to decline.In order to change the trend from the real to the virtual,the central 14th Five-Year Plan proposal has once again made clear the general tone of vigorously supporting the development of the real economy.However,in order to solve the problem of shifting from real investment to virtual investment,the first thing we need to solve is how to achieve structural balance and appropriate proportion between financial assets allocation and real investment.The main reason why the listed companies in China tend to invest from real to virtual is that the financial sector,virtual market and real estate market have higher investment returns and lower investment risks.However,the uneven degree of marketization in various parts of China,the imperfect institutional environment for the development of the real economy,and the many financing constraints of enterprises hinder enterprises from investing in the real economy.Starting from this problem,this paper focuses on analyzing and solving the negative squeeze of listed company financial assets allocation on entity investment.This study adopts a combination of standard research and empirical research,based on the data of A-share listed companies from 2009-2019,based on the theory of financing constraints and investment alternative basis,using fixed effect panel regression model,the related empirical statistical analysis,from two ways,theoretical and empirical analysis of enterprise financial assets allocation affect physical investment extrusion effect and the effect of the reservoir.The results show that:(1)The financial allocation of assets of listed companies has a significant negative effect on the actual investment.Enterprises allocate more assets to the financial sector in order to obtain high returns and low risks,which will further shrink and restrict the investment scale in the real sector.(2)As one of the investment approaches,the financial assets allocation is a means of rationalization,because the financial assets formed by financial assets allocation have better liquidity and realization functions,can increase corporate earnings,produce a reservoir effect,and is conducive to storing sufficient funds for corporate investment entities.However,non-tradable investments,such as real estate and long-term equity,do not have such a reservoir effect and can only help companies achieve leveraged arbitrage.Therefore,t the greater the scope for actual investments to be squeezed,the more real investment will be crowded out.(3)The excessive financial assets allocation of listed companies is influenced by the national macro monetary policy.The looser the monetary policy,the stronger the motivation of enterprises to invest in finance,and the more significant the crowding out effect of financial assets allocation on real investment.(4)the influence of the financial assets allocation of listed companies to invest in the entity,has relationship with the degree of financing constraints,financing constraints,the enterprise to obtain external financing cost is higher,therefore,the enterprise investment entity capital and wishes are not enough,easy to induce enterprises to put money into the financial sector,to produce a high level of financial assets allocation,lead to negative crowding out.(5)The impact of financial assets allocation on real investment varies among enterprises with different property rights,regional degree of marketization and industry categories.In state-owned enterprises,regions with low degree of marketization and manufacturing enterprises,high level of financial assets allocation is bound to increase and lead to a large number of crowding out of real investment.On the basis of empirical research,this paper puts forward policy suggestions such as optimizing the allocation of financial assets,supporting the development of real economy and improving the level of financial supervision.To reduce the negative crowding out effect of financial asset allocation on actual investment.