The Influence Of Excessive Financialization On Firm Performance Based On Life Cycle Theory

With the sweeping of globalization and the change of the life cycle of enterprises,more and more enterprises in China have gradually embarked on the path of financialization,and the level of financialization is also getting higher and higher.Affected by the changes in the economic situation and overcapacity,the competition between enterprises has become more intense,resulting in the continuous increase of costs,but the profit has not been improved.In order to quickly solve the above problems,financialization has become a good prescription for the "cure the disease" of the entity enterprises.Because of its own characteristics,it can maintain a high profit and the speed of withdrawal of funds is relatively fast,resulting in a large amount of funds flowing into the financial market,affecting the development of industry,and making the economic environment unstable,Therefore,the necessity of studying the financialization of enterprises and the consequences of financialization in different periods gradually emerged.Based on the life cycle theory,this paper studies the impact of the over-financing of Baoxi Bird on its performance under different life cycles,which enriches relevant research and has important practical significance.Based on relevant literature and theories,this paper summarizes the calculation and definition methods of over-financialization,establishes a theoretical analysis framework of how life cycle and over-financialization jointly affect enterprise performance,and analyzes and demonstrates how enterprise performance is affected by over-financialization under different life cycles.First of all,taking Baoxiniao,the clothing manufacturing industry,as the research object,combined with the particularity of the industry,among many division methods,the cash flow classification combination method and financial comprehensive index method were finally selected to divide the enterprise’s life cycle,and the operation of each life cycle was analyzed;Secondly,from the micro perspective,judge the size relationship between the growth rate of financial assets and the growth rate of physical investment of Baoxi Bird;From a macro perspective,compare the proportion of financial assets in total assets with the proportion of the whole industry.Synthesize the two to determine which period of time is in the process of over-financing;Finally,this paper compares the case enterprises with the comparison enterprises and the average level of the industry,analyzes the financial indicators and non-financial indicators respectively,judges the impact of over-financing on enterprise performance in different life cycles,and draws research conclusions.The research shows that with the evolution of the enterprise life cycle,some enterprises have gradually developed into over-financialization,and the impact on enterprise performance has become more and more obvious.Although it can play a certain role in promoting,in general,its negative impact is greater than its positive impact.Whether in the growth period or the mature period,the impact of over-financing on enterprise performance is more negative.Finally,according to the problems existing in the whole process of Baoxiniao’s over-financialization,the government and the enterprises themselves are put forward with targeted countermeasures,in order to provide valuable suggestions on how to use financialization to better serve the main business for enterprises under different life cycles.