The Impact Of Entity Enterprise Financialization On Enterprise Performance

In the process of China’s vigorous economic development,financial development and financial deepening are gradually in line with the world.At present,China’s real economy is in the stage of transformation.When real enterprises encounter financing difficulties,slow development and poor short-term performance in the process of transformation,they are likely to focus on the financial field and allocate more financial assets.This has led to the tendency of China’s economy to shift from the real economy to capital idling.Existing literature shows that enterprise financialization has both "reservoir effect" and "crowding out effect",and the comprehensive effect of the two is often negative.Some studies have pointed out that the allocation of financial assets in different industries is heterogeneous,so it is far from enough to point out the de financialization strategy from the perspective of the whole industry.In order to study the differences of enterprise performance affected by financialization in different industries,this paper selects A-share listed companies in non-financial industries from 2009 to 2019 as the research object,makes an empirical test on the whole industry sample and sub industry sample respectively,and analyzes the industry heterogeneity.This paper further takes industry concentration and factor intensity as the starting point,and analyzes the causes of industry heterogeneity through comparison.The empirical results show that the financialization of entity enterprises has a significant negative effect on the whole industry sample,indicating that China’s entity enterprises as a whole show excessive financialization.In the sub industry regression,the regression results of manufacturing industry and power,heat,gas and water production and supply industry are the most significant,while the absolute value of the regression coefficient of culture,sports and entertainment industry and mining industry is the largest.In further research,it is found that low concentration industries are more significantly affected by enterprise financialization than high concentration industries,and technology intensive industries and labor-intensive industries are more significantly affected by enterprise financialization than capital intensive industries.Based on the research results,this paper puts forward corresponding suggestions from the policy level and enterprise level.At the policy level: help broaden the financing channels of entity enterprises and reduce financing constraints;standardize the financialization behavior of enterprises and establish the institutional foundation;improve the regulatory system and take precautions.Enterprise level: appropriate allocation of financial assets;establish a correct investment concept;strengthen internal control.