Research On The Influence Of Corporate Financialization On The Efficiency Of Industrial Investment

In recent years,in order for entity enterprises to better adapt to the new requirements of high-quality economic development of China’s economy,the state has continuously implemented new policies to carry out supply-side reforms to revitalize the real economy,providing direction for entity enterprises and effectively promoting the transformation and upgrading of entity enterprises.However,our country’s entity enterprises still exist such problems as over capacity and insufficient technological innovation,which have led to a significant decline in the return on investment of enterprises.A large amount of industrial capital is concentrated in the financial industry and the real estate industry,resulting in a structural imbalance between the real economy and the virtual economy.The trend of financialization of entity enterprises is obvious.Therefore,for non-financial enterprises,how to make financial investment better serve industrial investment and rationally allocate corporate financial assets have become an important research topic at present.In this context,the paper firstly sorts out the relevant research literature.And the paper summarizes the current research problems of scholars.Secondly,this paper analyzes the reasons for the formation of corporate financialization and the current situation of corporate financialization.The analysis results show that the trend of corporate financialization is obvious.Although there is no serious reduction in industrial investment,its growing trend cannot be ignored.At the same time,the paper believes that the relatively high-yield characteristics of the financial industry are the main external reasons for the increasing financialization trend of my country’s real enterprises,and the internal reason is that the real enterprises have problems such as excess capacity,high operating costs,and insufficient profit margins of industrial assets.The departure of capital from the real and the virtual is just an objective reflection of the difficulty in implementing capital,insufficient industrial investment and low investment efficiency at the level of real enterprises.Therefore,the paper conducts mechanism analysis and heterogeneity analysis on the impact of corporate financialization on industrial investment efficiency.This is of great significance for guiding funds to return to the real economy,promoting the transformation and upgrading of entity enterprises,and promoting high-quality economic development.The paper selects non-financial listed companies in A-share market from 2008 to2020 as a sample and uses unbalanced panel annual data.The paper builds an OLS model to study the relationship between corporate financialization and investment efficiency.In this paper,the Richardson model is used to calculate the residual value.Then,the data are processed as the explained variable industrial investment efficiency.The paper chooses the level of corporate financialization as an explanatory variable.The paper explores the impact of the financial asset allocation of entity enterprises on the efficiency of industrial investment,and conducts robustness and endogeneity tests to ensure the accuracy of the empirical results.Thirdly,the paper deeply analyzes whether different enterprise characteristics will strengthen or weaken the relationship between the above variables from the perspective of heterogeneity such as property rights,industries,and technological innovation degrees,and finally reach the following main conclusions:(1)There is an inverted U-shaped relationship between the financialization of non-financial enterprises and the efficiency of industrial investment.(2)The financialization level of state-owned enterprises and private enterprises has a significant inverted U-shaped relationship with industrial investment efficiency.Compared with private enterprises,state-owned enterprises are more sensitive to changes in the level of financialization.(3)For manufacturing and information technology enterprises,the relationship between the degree of enterprise financialization and the efficiency of industrial investment is the same as above,which is in an inverted U shape.Compared with manufacturing enterprises,the information technology industry is more sensitive to changes in the level of financialization.(4)Enterprises with a high level of technological innovation can solve a certain degree of over capacity and low added value of products through their own technological innovation,and there is an inverted U-shaped relationship between their level of financialization and industrial investment efficiency.(5)The occupation of industrial funds by enterprises investing in real estate will lead to a downward trend in the industrial investment efficiency of enterprises.The level of investment in real estate is negatively correlated with the efficiency of industrial investment.