The Impact Of Financial Background Of Executive Team On Financial Investment Behavior Of Non-Financial Companies Based On The Perspective Of Equity Concentration

In recent years,more and more companies are allocating their capital to the financial sector.According to statistics,a total of 2717 real enterprises will have financial investment behavior in2021,and the proportion of financial investment is increasing,and the financial investment behavior of real enterprises is becoming more and more obvious,and academics are concerned about this phenomenon.Numerous studies have shown that using funds needed for production and operation to invest in financial assets raises the risk of economic operation,with the micro manifestation being an increase in the risk of stock price collapse and disruption of capital market order.As a result,an in-depth investigation into the factors influencing the financial investment behavior of real enterprises is critical for guiding the development of the real economy and preventing financial risks.Previous research on the influencing factors concluded that the increasingly pronounced financial investment behavior of real enterprises is primarily related to an unstable external macro environment,a profitability crisis in the main business,and an imbalance in corporate governance.However,under the policy direction of "financial services for the real world," financial talents are constantly flowing into real enterprises,resulting in an increasing proportion of executives with financial backgrounds in enterprise executive teams.Executives,as the most important decision executors of a company,have a certain amount of influence on the company’s financial investment decisions.does this influence lead to significant financial investment behavior of the enterprise? How does this influence differ depending on the level of shareholder decision-making power?To address the aforementioned issues,this paper compares relevant domestic and international literature on corporate financial investment,investigates the impact of their financial background characteristics on the financial investment behavior of real enterprises from the management level,and considers the moderating effect of ownership concentration on the connection between them.Following that,the mechanism of the influence of the executive team’s financial background on the financial investment behavior of real enterprises is investigated using the resource acquisition dimension of the executive team’s financial background.In addition,because executives’ decisionmaking discretion changes under different levels of corporate governance,this paper investigates the variability of the impact of the executive team’s financial background on the financial investment behavior`r of firms with varying levels of internal and external governance.Based on this,this paper selects A-share non-financial listed companies for the period 2012-2021,and the study shows that:(1)The executive team’s financial background drives financial investment in real enterprises,and the financial investment behavior is becoming more visible.Equity concentration has a negative moderating effect on the relationship between the executive team’s financial background and the financial investment behavior of real enterprises,indicating that as ownership concentration increases,the tendency of financial investment of the executive team’s financial background will be weakened.(2)The mechanism of action test results show that the executive team’s financial background primarily alleviates corporate financial constraints by increasing corporate financial flexibility,which in turn promotes corporate financial investment.Further study discovered that the positive effect of the executive team’s financial background on the entity’s financial investment behavior is more significant in the sample of firms with low-quality internal control and low analyst attention and that internal control and analyst attention have a significant governance effect on the financial investment propensity of the executive team’s financial background.By examining this characteristic of the financial background of the executive team,this paper enriches the study of financialization in the micro area from the perspective of managerial behavior,provides suggestions for the rational selection and hiring of management by firms,and verifies the existence of agency problems in the financial investment decisions of real firms from the side.Furthermore,the research in this paper provides a relevant basis for enterprises and government regulators to reasonably guide enterprises to appropriate financial investment based on the actual situation from the two perspectives of internal corporate control and the attention of external analysts.