Research On The Influence Of Non-Financial Enterprises Financialization On Financial Risk

As China enters a new period of economic structure transformation.the investment return rate and operating profit improvement space of industries such as manufacturing and construction are gradually declining.The rapid development of the financial industry makes it impossible for the real industry to obtain the same high profits as the virtual economy,which accelerates the deviation between the real economy and the virtual economy in terms of investment return,This has led to more physical enterprises investing idle funds or even funds invested in their main businesses in the financial market.However,the maturity,risk level,return rate,and trading methods of different financial assets may vary,which may increase the liquidity of enterprises.alleviate their capital turnover problems,or cause serious losses to enterprises due to excessive principal and risk,making them face significant financial risks.So what is the reason for non-financial enterprises to allocate financial assets?What are the economic consequences of the allocation of financial assets under different causes?This article conducts empirical analysis based on the data of non-financial and non ST listed companies in A-share market from 2011 to 2020.The research results show that non-financial enterprises’ financialization investment will expand their financial risks,and this conclusion is relatively stable.After introducing equity incentive as an adjustment variable in the original model,this paper finds that the amplification effect of enterprise financialization on its own financial risk is suppressed,and compared with stock options,the adjustment effect of Restricted stock as an incentive mode is more obvious.Further research has found that the financialization of non-financial enterprises exacerbates financing constraints,thereby expanding financial risks.In addition,this study found that the promoting effect of corporate financialization on expanding financial risk is heterogeneous at the level of property rights and enterprise scale.The research results indicate that compared to state-owned enterprises,private enterprises significantly increase their financial risk by allocating higher levels of financial assets;Compared with large-scale enterprises,the "speculative profit seeking" effect of financial investment in small-scale enterprises is dominant,significantly expanding the financial risks of enterprises.Therefore,physical enterprises should allocate financial assets reasonably and provide management with certain equity incentives,allowing moderate financial investment to play a role in achieving asset preservation and appreciation,and providing sufficient financial support for the development of the main business.The government should increase support for private enterprises and small and micro enterprises,alleviate their financing constraints,and effectively monitor the risks caused by financialization.The financial sector should timely and accurately control the flow of financial resources,ensure that bank loans and financial channel financing flow into the real economy sector instead of flowing back into the financial sector,and promote the healthy development of the real economy.