A Study On The Influence Of Asset Financialization Of Pharmaceutical Manufacturing Enterprises On Enterprise Growth

With the continuous transformation of the economy and changes in market conditions,the profit margin of pharmaceutical manufacturing enterprises is shrinking,which has prompted more and more pharmaceutical manufacturing enterprises in China to seek high returns through financial investment.As a result,excessive attention has been paid to the allocation of financial assets and the neglect of research on related drugs,leading to an increasingly serious "illness" in China that is "moving away from reality to emptiness".By combing the existing literature,it is found that most of the current research on the impact of corporate financialization focuses on the short-term and local impact of enterprises,such as capital structure,R&D investment and operating profit.Few scholars have studied the relationship between the melting of funds and growth based on the long-term and overall development of enterprises.Considering that the growth of enterprises is the key factor reflecting the development of enterprises,It is of theoretical and practical significance to study the impact of asset finance of manufacturing enterprises on the growth of enterprises.Based on free cash flow theory,preventive savings theory,investment substitution theory and enterprise growth theory,this paper expounds the current situation and existing problems of asset finance in pharmaceutical manufacturing industry.At the same time,the case study method and comparative study method are adopted,taking Yunnan Baiyao as the research object,selecting Tongrentang as the comparison company,and focusing on 11 indicators of four dimensions,such as profitability,sustainable operation,development ability and market expectation,to analyze the impact of asset financing of Yunnan Baiyao on its growth,and give targeted suggestions on this basis.The conclusions of this paper are as follows:(1)The overall degree of asset finance in the pharmaceutical manufacturing industry is appropriate;(2)Yunnan Baiyao has a high degree of financial asset allocation,and the latter stage is dominated by transactional financial assets;(3)The asset financing of Yunnan Baiyao has a certain negative effect on the profitability,sustainable operation,development ability and market expectations of enterprises,which is not conducive to the growth of enterprises;(4)Yunnan Baiyao’s asset financing affects the company’s growth through crowding out R&D investment,operation investment and other ways.Based on the above research results,this paper puts forward the following suggestions from the perspective of enterprises and governments:(1)enterprises should appropriately allocate financial assets to balance industry and finance;(2)Enterprises scientifically manage financial investment and optimize the whole process of investment;(3)Enterprises should reasonably promote industrial diversification and achieve new profit growth;(4)The government creates an institutional environment to improve the return on investment of the real economy;(5)The government should improve the regulatory mechanism to achieve differentiated management in different industries.This paper systematically and deeply studies the impact of asset financialization of pharmaceutical manufacturing enterprises on the growth of enterprises;On the other hand,it is helpful for the managers of enterprises in the same industry and other non-financial enterprises to fully understand the role of financial assets,formulate a scientific asset allocation plan,make financial capital and physical capital complement each other,and promote the long-term healthy development of enterprises.