Financial Background Of CFO And Corporate Financialization

Behind the booming economic development and industrial transformation and upgrading,the imbalance of the proportion of real investment and financial investment in my country has become increasingly prominent,and the financialization of non-financial enterprises has attracted great attention from the national government and academia.Based on the perspective of micro-management,it is of great significance to study the endogenous factors of corporate financialization to ensure the sustainable development of enterprises and guide the economy to "get out of the virtual and into the real".In modern enterprises,the chief financial officer plays an important role in both financial supervision and strategic decision-making,and financial investment decision-making is a key link in corporate strategic decision-making.In this regard,this paper takes the decision-making perspective of the CFO as the starting point,based on the imprinting theory,social capital theory and "respect and order" of Chinese Confucian culture,to study the impact of the financial background of the CFO on the corporate financialization and the moderating effect of the status of the CFO,and explore the internal impact mechanism,context and economic consequences of this impact.Using the annual data of China’s non-financial A-share listed companies from2008 to 2019,this paper finds through empirical research: First of all,when other conditions remain unchanged,the financial background of the CFO significantly promotes corporate financialization.Secondly,the higher the status of the CFO among senior executives,the stronger the aggravating effect of his financial background on the corporate financialization.Then,the financial background of the CFO mainly aggravates the corporate financialization through increasing self-confidence and alleviating financing constraints.In addition,the aggravating effect of the financial background of the CFO on the corporate financialization is mainly reflected in SOE.Finally,the "crowding-out effect" of financialization on corporate innovation is more obvious,and the financial background of the chief financial officer can significantly magnify this effect.This research not only enriches the related research on corporate financialization and the professional background of the CFO at the theoretical level,uses the unique data of the CFO status to verify the practical significance of traditional culture in corporate governance in my country,but also provides new ideas for relevant entities to prevent over-financialization of enterprises and avoid economic "departure from real to virtual" in the field of practice.