Research On The Relationship Between The Technical Background Of Entity Enterprise Executives And Enterprise Financialization

The financialization of real enterprises refers to the fact that enterprises gradually break away from their main business investment and begin to invest funds in industries with short cycles and high returns,such as finance and real estate industries.However,the "departure from the real to the virtual" of real enterprises will generate economic bubbles,cause false prosperity and then induce financial crises,and cause damage to the smooth operation of the macro economy.The top echelon theory points out that the personal characteristics of executives will affect the decision-making behavior of the enterprise.Executives with technical backgrounds often have distinctive behaviors and thinking patterns,which will improve the overall technical level and competitiveness of the senior management team,make extremely important long-term strategies for enterprise development,optimize the capital allocation of the enterprise,and drive the enterprise.Efficiency improvement.In view of this,this paper mainly focuses on discussing the influence of the technical background of the executives of entity enterprises on the financialization of enterprises,and closely combines the theory of high-level echelon and imprinting,and analyzes it through empirical research.The research object selected in this paper is the A-share listed companies in China’s Shanghai and Shenzhen stock exchanges from 2010 to 2021.Through the multiple regression analysis of the sample data,the influence of the technical background of the executives of the entity enterprise on the financialization of the enterprise is tested.The research of this paper shows that executives with technical background will reduce the degree of financialization of entity enterprises.Further mechanism test reveals that executives with technical background can reduce the holding of financial assets of enterprises by enhancing the entity investment of enterprises.After a robustness check on the data,it was found that the above results still hold.At the same time,the corporate governance level is introduced as a moderating variable to study the moderating effect of corporate governance level on the technical background of executives and corporate financialization.The study found that the improvement of corporate governance level will weaken the impact of executives’ technical background on corporate financialization.In addition,this paper also conducts further research and examines the relationship between the technical background of executives and the financialization of real enterprises under different financing constraints.The study found that executives with technical background can reduce the degree of financialization of real enterprises,and the effect is more significant in the environment of high financing constraints.Finally,by dividing the financial assets held by enterprises into short-term financialization and long-term financialization,it is found that senior executives with technical background have obvious inhibitory effect on long-term financialized asset investment of enterprises.The research on differences in the nature of the industry finds that executives with technical backgrounds have a more significant impact on corporate financialization in high-tech industries.Based on the background of China’s transition economy,this paper studies the impact of the technical background of the executives of real enterprises on the financialization of enterprises,enriches the related research between the background characteristics of executives and the financialization of real enterprises.The selection of executives has practical reference significance,and to a certain extent provides relevant experience basis for enterprises and regulatory authorities to prevent financial risks.