| For the economy of a large country,physical enterprises are the foundation of the country and the foundation of the national economy.Since the reform and opening up,China’s real economy has developed rapidly,and the development level of many key areas has been continuously improved,and a series of major achievements have been made.However,in recent years,due to the imperfect interaction mechanism between the real economy and the virtual economy,and the unobstructed transmission path,a large amount of funds have self-circulated or even idled in the financial system,the phenomenon of social capital "abandoning the real and investing in the virtual" has become increasingly obvious.On the macro level,it shows the trend of financial economy,and on the micro level,it shows the trend of financial industry and enterprises.The financial investment behavior caused by the expansion of finance,real estate and other industries has a serious impact on the investment of physical enterprises focusing on the upgrading and transformation of their main businesses.If it continues for a long time,it will erode the development foundation of the real economy.From the perspective of assets,physical enterprises will pursue capital appreciation and higher returns and hold a higher proportion of financial assets;From the perspective of investment,physical enterprises will prefer to invest their working capital in financial assets;From the perspective of profit,the overall profit level of entity investment of entity enterprises tends to decline,due to the increase in the proportion of net income of financial investment.Under this background,this paper makes an in-depth study of the degree,causes and policy governance measures of listed companies’ financialization in different entities in China,which can deepen the theoretical understanding of enterprise financialization and provide useful reference for the economic and financial management departments to formulate policies to guide the healthy development of entities.This paper selects the listed entity enterprises of Shanghai and Shenzhen A-share in China from 2007 to 2021 as the research sample,and empirically analyzes the situation of China’s entity enterprises’ financialization and its industry differences in the past 15 years through data statistics.The empirical results show that:(1)China’s entity enterprises’ financialization has significant industry differences,and the time sequence is stable,which is shown as follows: the comprehensive industry has the highest degree of financialization,and the mining industry has the lowest degree of financialization;Compared with non-manufacturing industries such as service industry,the degree of financialization of manufacturing industry is relatively low;From the perspective of the three major industries,the degree of financialization of the tertiary industry is higher than that of the primary and secondary industries;(2)There is a significant positive correlation between the degree of industry competition and the degree of industry financialization.The lower the profit margin of the main business,the higher the degree of industry competition and the higher the degree of financialization.The entity enterprises will give up the low-yield industrial investment under the high competitive intensity due to the profit-seeking motivation,thus being forced to turn to financial investment,leading to the improvement of the degree of financialization;(3)There is a significant positive correlation between the level of industry development and the degree of industry financialization.The higher the growth rate of net assets per share,the higher the level of industry development,the higher the degree of industry financialization.From the perspective of maximization of shareholders’ wealth,the higher the growth rate of net assets per share,the better the protection of shareholders’ interests,and the shareholders’ meeting will continue to maintain the investment in the enterprise,so that the enterprise can further develop.At the same time,in order to meet the requirements of shareholders,enterprises will also use a large amount of funds for higher income financial investment,leading to the intensification of the degree of financialization;(4)There is a significant negative correlation between the industrial asset structure(the proportion of tangible assets)and the financial degree of the industry.The higher the proportion of tangible assets,the lower the financial degree of the industry.If enterprises in the industry generally prefer to hold a large number of tangible assets,it means that the industry is more likely to belong to traditional manufacturing industry or heavy asset industries such as energy and electricity;On the contrary,it is more likely to belong to various emerging industries or high-tech industries.The higher the proportion of tangible assets,the higher the proportion of industrial investment of enterprises.Influenced by China’s early planned economy,industrial investment is still the main investment mode of China’s entity enterprises.The proportion of industrial investment is higher than that of financial investment,resulting in a low degree of financialization.The possible innovations of this paper are as follows:(1)Take the micro-enterprise financialization as the starting point,use different indicators to measure the degree of financialization of the whole sample and industries,and use the latest data to supplement and improve the relevant research;(2)Conduct research on the financialization of entity enterprises from the perspective of industry,verify the existence and stability of their industry differences,and conduct empirical tests on the possible causes of industry differences,providing a variety of perspectives for the study of industry differences.The research results of this paper have the following policy implications:(1)At the level of entity enterprises,on the one hand,it is necessary to clarify its own position,study the relevant theoretical knowledge of financial investment as far as possible,and balance the relationship between the main business and financial investment;On the other hand,we should take targeted measures to avoid being passively "incited" by the financial sector and try to maintain the degree of enterprise’s financialization at a more appropriate level according to the characteristics of the industry and the level of enterprise’s financialization in the industry in combination with our own actual situation;(2)At the level of government departments,on the one hand,we should strengthen the supervision of the financial sector and the virtual economy,improve the financial market system,prevent systemic financial risks,and avoid the excessive flow of social funds to the virtual economy sector and the deepening of the degree of financialization;On the other hand,we should further implement the innovation-driven development strategy,reasonably guide enterprises to make industrial investment,and increase support for technological innovation of physical enterprises,so that physical enterprises can improve their competitiveness through their own development. |
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