Research On The Motivation And Consequence Of Financialization Of Manufacturing Enterprises

In the more than 40 years of Economic Reform and open up,the financial market has continuously developed and improved.The vigorous development of the virtual economy has also accelerated the pace of corporate financialization.The impact of corporate financial investment on the development of the real economy has gradually deepened,and corporate financialization has contributed to the financialization of the economy.With the rising labor costs in the country,the demographic dividend has gradually disappeared,the demand in the international market has been sluggish,the competition in the domestic market has intensified,overcapacity,the development of the country’s manufacturing industry is struggling,and the downturn in the real economy has prompted funds to flock to industries with higher profit margins.Among them,the financial and real estate industries have become an important flow of industrial capital.The frequent occurrence of financialization behaviors of manufacturing enterprises has an important impact on the operation and development of enterprises,and even the macro economy.Therefore,it is of great value and significance to study the financialization behaviors of enterprises.Based on the garment manufacturing enterprise Septwolves,this paper adopts the case study method to conduct research.Firstly,through theoretical analysis,it discusses the measurement and identification of enterprise financialization,the investment path of financialization,the motivation of financialization and the economic consequences of financialization to enterprises.Secondly,the background of the Septwolves Group is briefly described,and the motivation and path of the financialization of Septwolves are analyzed.Finally,from the four perspectives of market performance,financial performance,innovation risk and financial risk,it analyzes the comprehensive impact of corporate financialization behavior on enterprises,draws conclusions and puts forward management suggestions.Through the research,this paper draws the following conclusions:(1)The main driving factors for the deepening of the financialization of Septwolves include:improving the use efficiency of idle funds,improving the sluggish status of the main business,implementing a diversification strategy and pursuing high returns in the financial industry;(2)Financialization will increase the innovation and financial risks of enterprises;(3)financialization hinders the improvement of long-term profitability of manufacturing enterprises;(4)the high-quality development of manufacturing enterprises is inseparable from the support of reasonable industrial policies and the financial industry.By exploring the reasons and consequences of Septwolves’financialization behavior,this paper enriches the research literature on corporate investment behavior and capital operation in theory,guides corporate capital operation and financial strategy in practice,and strengthens the supervision of investment in listed companies.Conduct regulation provides good practice guidance and inspiration.