Research On The Impact Of Non-Financial Enterprise Financialization On Going Concern Ability

Since the development of China’s capital market,the economic environment has become stable.For enterprises,maintaining the stable growth of their sustainable operation ability is the top priority to meet the long-term development needs of enterprises.However,with the continuous expansion of the scale of the financial market,the development of the real economy is restricted,and more and more non-financial enterprises choose to enter the field and invest most of their resources in it.The proportion of financial assets of non-financial enterprises has increased significantly,and the proportion of financial income in total profits is also increasing,that is,‘the financialization of non-financial enterprises’.With the deepening of the process of enterprise financialization,the support of the main business in cash flow,strategic innovation and other aspects is not as good as before.From the perspective of asset structure and profit stability,due to the imbalance of asset structure and the increase of profit instability,the profitability and development ability of enterprises have been affected to varying degrees,leading to serious setbacks in the stable growth of enterprises’ sustainable operation ability.Therefore,the change of sustainable operation capability is closely related to the process of enterprise financialization.It is necessary to carefully grasp the boundary between initial financialization and excessive financialization.At the 19 th and 20 th National Congress of the People’s Republic of China and other conferences,it has been repeatedly stressed that we should continue to strengthen the reform of the financial market system,prevent the melting of excessive funds of enterprises,and ensure the long-term and stable development of enterprises.Most of the existing studies analyze the impact of financialization on the ability of sustainable operation from the macro level,but the micro performance of financialization is enterprise financialization.Therefore,this paper uses the case analysis model,selects Youngor as an example,and combs the basic situation of its financialization.On the basis of the theory of shareholder value maximization,combined with the impact mechanism of financialization on the ability of sustainable operation,it selects financial indicators and non-financial indicators to analyze it,and studies the impact of different stages of financialization on the ability of sustainable operation through its 20-year process of financialization in stages.Combined with the previous research,this paper draws the following three conclusions based on the case: First,in the initial stage of financial,the financial of non-financial enterprises can promote the sustainable operation ability of enterprises.Second,in the stage of over-financialization,the financialization of non-financial enterprises has a restraining effect on the sustainable operation ability of enterprises.Thirdly,in the stage of de-financization,the transformation of the process of enterprise financialization will make the sustainable operation ability recover and present a good trend of development,which will also promote the development of sustainable operation ability.Therefore,it is suggested that enterprises should carefully grasp the scale of financialization and make it clear that the development of main business is the basis of enterprise operation.The conclusion of this paper enriches the understanding of the impact of non-financial enterprises’ financialization on the ability of sustainable operation,and provides micro-level evidence for enterprises to grasp the scale of financialization when carrying out financialization.The disadvantage is that the time of the non-financial stage is still short,and may not be enough to fully understand the performance of the enterprise’s sustainable operation ability in the non-financial stage.