Research On The Impact Of Digital Finance On The Excessive Financialization Of Enterprises

In the past,China’s rapid economic development has supported the prosperity of the financial industry.Finance and real estate have developed into recognized profiteering industries.In contrast to the return rate of real economy,which is far lower than the return rate of financial investment,many real enterprises have invested in these industries driven by the pursuit of Profit maximization.The trend of excessive financialization of real enterprises has become increasingly obvious,and the phenomenon of economic financialization has become prominent.At the same time,the flourishing development of the digital economy has become a new driving force for economic development,and "promoting the integration and development of the digital economy and the real economy" has been included in China’s 14 th Five Year Plan.In the era of digital economy,how to promote the deep integration of digital technology with finance and the real economy,strengthen the function of financial services to entities,and guide economic development from virtual to real is a question that needs to be answered to achieve high-quality economic development.So has the continuous promotion of digital finance in China promoted or suppressed the excessive financialization of non-financial enterprises? What is the mechanism of its impact? The study of these issues helps to further clarify the impact mechanism of digital finance on the financialization of physical enterprises,and has important practical and theoretical significance for how to better implement digital finance strategies and promote high-quality economic development.This thesis takes the listed companies in Shanghai and Shenzhen A-shares excluding the financial industry and the real estate industry from 2012 to 2021 as samples,and constructs a Panel data model to empirically test the impact of digital finance on the excessive financialization of non-financial enterprises.The conclusion is that digital finance helps to curb the excessive financialization of enterprises.By using the Mesomeric effect model to test the impact path,it is found that the development of digital finance mainly suppresses the excessive financialization of enterprises by alleviating speculative motives,rather than by alleviating the financing constraints.Heterogeneity testing found that compared to state-owned enterprises,the development of digital finance can more effectively suppress the degree of excessive financialization of non-state-owned enterprises;The development of digital finance has a significantly stronger inhibitory effect on the excessive financialization of manufacturing enterprises compared to non manufacturing industries;The development of digital finance can significantly reduce the probability of enterprises in the central and eastern regions becoming excessively financialized enterprises,while its effect is not significant in the western and northeastern regions,and the reduction of the level of enterprise overfinancialization by digital finance is only significant in the eastern region.In addition,as the scale of enterprise research and development investment and its proportion in operating income increase,the inhibitory effect of digital finance on excessive financialization of enterprises also increases.Then,this thesis selects Youngor Group,a typical case of non-financial enterprises’ excessive financialization,as the object of this case analysis.After introducing the basic development of Youngor Group,this thesis combs the process of Youngor Group’s financialization and its three stages.Further,this thesis analyzes the internal and external causes of Youngor Group’s financialization,as well as the economic consequences of different degrees of financialization on Youngor Group’s financial indicators,debt and risk,and the company’s stock value.The case study shows that the development of digital finance has reduced the degree of Youngor Group’s excessive financialization.In the years when digital finance has developed rapidly,Youngor Group is more likely to get rid of the status of excessive financialization.The impact of digital finance on Youngor Group’s excessive financialization is mainly to play the role of improving the structural dislocation of financial services such as attribute mismatch and industry mismatch,help the development of the real economy,constantly narrow the gap between the financial return rate and the real return rate,and improve Youngor Group’s excessive financialization situation from the path of investment substitution,rather than through the path of easing constraints on savings motivation.At the same time,in order to adapt to the digital economy era,Youngor Group’s R&D investment also increases with the development of digital finance.On the one hand,it reduces the funds invested in the financial field,and on the other hand,it increases the profits of the main business channels brought about by technological progress,which can narrow the gap between financial profits and entity profits,curb Youngor Group’s profit motive for financialization,and alleviate the problem of excessive financialization by strengthening R&D investment.The empirical conclusions of this thesis are also basically verified in the individual case of Youngor Group,which strengthens the logic of this thesis,and also finds powerful factors for Youngor Group to govern the excessive financialization.Finally,based on the research findings,this thesis proposes relevant suggestions from the macro and micro perspectives on the enterprises’ excessive financialization of government and regulatory authorities,as well as on the governance of physical enterprises.Firstly,the government and regulatory authorities should increase the construction of digital finance and leverage its governance role in the excessive financialization of non-financial enterprises;At the same time,we need to increase support for the development of the real economy and guide economic development to move from emptiness to reality.Secondly,for economic entities such as physical enterprises,it is important to closely follow macroeconomic policy guidance,grasp the degree of financialization,act within our capabilities,optimize financial investment structure,increase research and development efforts,and focus on industrial development.