Research On The Financialization And De-financialization Of Lansheng Corporation

In recent years,the operation of entity enterprises is facing great challenges,with the profit rate of entity economy decreasing,the return on investment being low,and the willingness of enterprises to invest in entity economy weakening.In contrast,the financial industry is booming,the financial system is constantly improving,and it has the characteristics of low barriers to entry,high returns,etc.,which causes the funds of entity enterprises to invest in the financial market through various forms such as stocks and entrusted wealth management.Enterprises are gradually showing the trend of financialization,which in turn affects the development of their main business.Taking Lansheng Corporation as an example,this thesis analyzes the motivation and effect of financialization and de-financialization of Lansheng Corporation.Firstly,the research background and significance are expounded,and the definition,motivation and effect of enterprise financialization are reviewed.Secondly,this thesis introduces the background of the financialization of Lansheng Corporation,measures the financialization from the perspective of the proportion of financial assets and the proportion of financial income,sorts out the ways and processes of the financialization of enterprises,and measures taken by enterprises to definancialize.Thirdly,through the annual report and other announcement information,the reasons for the company’s financialization are analyzed,and it is found that the financialization of Lansheng Corporation is mainly aimed at maintaining the liquidity of assets,pursuing capital for profit,realizing diversified development and coordinated development of industry and finance.By analyzing the financial effect of the company,it is found that Lansheng Corporation have gained higher short-term investment income and improved the enterprise performance.However,financial assets occupy the main business,resulting in insufficient investment in the main business and weakening the core competitiveness of the main business of enterprises;At the same time,the excessive proportion of financial assets leads to the fluctuation of corporate profits and the uncontrollable risk of corporate profits.Finally,the main reason why Lansheng Corporation choose to go financialized is that the main business development of enterprises and financial development lead to unstable business operation.By introducing high-quality assets and returning to the main business,the effect of de-financialization gradually appears.By analyzing the causes and effects of financialization and de-financialization,this thesis finds that the financialization of enterprises has improved the performance of enterprises to a certain extent,but over-financialization has crowding effect,resulting in insufficient investment in main businesses and lack of core competitiveness,which is not conducive to the long-term development of enterprises.At the same time,de-financialization will play a positive role in focusing on the development of main businesses.In the process of financial investment,enterprises need to invest moderately to prevent financial risks,so that financial business can better promote the development of entity business.