Research On The Impact Of Manufacturing Enterprise Financialization On Financial Risk

Along with the rapid development of the financial industry,China’s growth has also shown a move towards financialization.On the macro level,it shows that the proportion of added value of the financial industry in GDP has gradually increased,while on the micro level,it shows that enterprises continue to use funds to allocate financial assets.Finance is the booster of the real economy,and the development of the financial market is conducive to the stable operation of the real economy to a certain extent.However,historical laws have proven that the excessive development of the financial industry will lead to a series of risks.As the foundation of the development and expansion of the national economy,the financial security of manufacturing enterprises is closely related to the high-quality development of our economy.When manufacturing enterprises allocate too many financial assets,they squeeze the funds used by enterprises for physical development and innovative research and development,and infect the financial sector risks to enterprises,which will eventually lead to the increasing financial risks of enterprises.Exploring the relationship between the financialization of manufacturing enterprises and financial risk is therefore crucial to improving the comprehensive strength of manufacturing enterprises and achieving sound macroeconomic operations.This thesis uses data related to manufacturing enterprises in Shanghai and Shenzhen A-shares from 2011-2021 to establish a multiple regression model to empirically study the relationship between financialization and financial risk of manufacturing enterprises and to test the mediating role of investment efficiency,while conducting robustness tests on the above regression results by replacing independent variables,replacing dependent variables and lagging independent variables to ensure reliable results.The empirical analysis results show that:first,the financialization of manufacturing enterprises will significantly increase their financial risks.Secondly,investment efficiency plays a mediating role,that is,the financialization of manufacturing enterprises increases financial risks by reducing investment efficiency.Thirdly,through further analysis,it is found that holding financial assets with different maturities has different effects on the financial risks of manufacturing enterprises.In most cases,enterprises hold long-term financial assets for speculative motives,which will significantly increase the financial risks.Fourthly,in manufacturing enterprises with high analyst focus,managers have stronger motivation to speculate based on performance pressure,which will enhance the positive impact of corporate financialization on financial risk.Finally,this thesis puts forward suggestions from the enterprise and government levels in combination with the economic development situation,providing relevant suggestions for manufacturing enterprises to formulate reasonable investment strategies,and providing more ideas for government departments to improve the market supervision mechanism.