The Influence Of Alumni Relationship Between Executives And Fund Managers On Corporate Financialization

Under the background of the financial market’s rapid development,the phenomenon of "financialization" has appeared in our non-financial business,the volume of material economy which is the foundation of the national economy has declined.The capital that should be used in the production and operation fields has poured into the financial market,and the corporates have emerged the trend of " capital being diverted out of the material economy",therefore,the factors that affect the financialization of corporates have been widely concerned by the academic and practical circles.At the micro level,the elements mainly collected on the personal characteristics of corporate executives,while the alumni relationship between executives and fund managers is also concerned by scholars.Does the alumni relationship between executives and fund managers have an impact on corporate financialization? This is a question worth discussing,and what is the mechanism in the process? Under what conditions will the corporate financialization be more sensitive to the alumni relationship between senior executives and fund managers?In order to answer the above questions,based on the information asymmetry theory,reputation mechanism,overconfidence theory and brand theory,this paper takes Ashare listed companies from 2010 to 2020 as samples to study the influence of alumni relationship between corporate executives and fund managers on corporate financialization,and analyzes the transmission mechanism and regulation mechanism.The quantile regression is used to examine the influence of alumni relationship between corporate executives and fund managers on corporate financialization.It is found that the wider relationship executives have,the higher degree of corporate financialization.The conclusion is still valid after the introduction of instrumental variable to deal with the endogenous problem.After studying the transmission mechanism,it is found that the alumni relationship between executives and fund managers could improve the managers’ overconfidence to deepen the degree of financialization,the managers’ overconfidence has partial mediation effect;After studying whether the CEO has financial background in the regulation mechanism,it is found that the alumni relationship between executives and fund managers has a significantly positive effect on the corporate financialization,when the CEO does not have financial background.In order to enhance the credibility and reliability of the empirical results,different methods are used to measure the variable and the robustness test is performed.The research results at the micro level broaden the scope of executives’ personal characteristics effect on corporate financialization,enrich the paper about influencing factors of corporate financialization,and expand the role of alumni relationship of executives in the capital market.