The Impact Of Corporate Financial Asset Allocation On Operating Performanc

With the deepening globalization of finance and trade,the boundaries between different industrial fields have become very blurred,and the integration and development of finance and industry with each other has become a new economic trend.At present,under the situation of domestic and international economic recession and intensified market competition,enterprises are facing various difficulties and challenges in the process of business development.At t he same time,because the return on investment in the financial sector far exceeds that of real investment,this has caused a great impact on the company’s investment decisions,and some enterprises continue to increase their financial investments,and the phenomenon of "de-realization to deficiency" is becoming more and more obvious.The ninth meeting of the Central Finance and Economics Commission held in 2021 clearly proposed that all financial activities should be brought under supervision,opposing cap ital monopoly and preventing disorderly expansion of capital.The outline of the 14 th Five-Year Plan and the 2035 Vision also proposes to establish a system in which finance can strongly support the growth of China’s real economy.In this context,this thesis combines the Chinese context,the characteristics of the times of corporate development and the heterogeneous characteristics of enterprises to study in depth the impact of corporate financial asset allocation on corporate business performance,which has important theoretical and practical values.In addition,firms have different motives to purchase financial assets of different maturities,so it is necessary to distinguish the maturity of financial asset allocation for research.O n this basis,considerin g that firms’ financial asset allocation and business performance differ across life cycles,this thesis also explores the heterogeneity of the impact of firms’ financial asset allocation on business performance from a dynamic perspective of life cycle.Therefore,based on financial deepening and constraint theory and precautionary savings theory,etc.,this thesis studies the impact of corporate financial asset allocation on business performance,and empirically tests the impact of corporate financial asset allocation on business performance by constructing corresponding empirical models with a sample of A-share listed companies in Shanghai and Shenzhen in China from 2008 to 2021: this thesis first explores the impact of corporate financial asset allocation on business performance,followed by an in-depth analysis of the impact of financial asset maturity on business performance,and further studies the impact of corporate financial asset allocation on business performance at different life cycle stages.The results of the study find that:(1)corporate financial asset allocation inhibits enterprises from improving their business performance;(2)There are differences in the impact of corporate financial asset allocation on business performance in different life cycles.Compared with growth-stage companies,corporate financial asset allocation has a less inhibitory effect on mature-stage companies and a greater inhibitory effect on recession-stage companies.(3)Enterprises investing in financial assets with different maturities have different impacts on operating performance.Specifically,short-term financial asset allocation can promote the improvement of corporate operating performance,while long-term financial asset allocation is the opposite.The negative impact of financial asset allocation on corporate operating performance is mainly due to the role of long-term financial asset allocation;(4)Financial asset allocation also has different effects on business performance at different life cycle stages.Specifically,it is found that the positive effect of short-term financial asset allocation on business performance is smaller than that of maturity but larger than that of recession for growth stage firms;in contrast,the dampening effect of long-term financial asset allocation on business performance is larger than that of maturity but smal er than that of recession for growth stage firms.In response to the above findings,the article proposes corresponding countermeasures at the government and enterprise levels.The research results of this thesis can help enterprises better understand the economic consequences of financial asset allocation and provide theoretical support for relevant departments to formulate and implement economic policies such as "financial services for real enterprises".