| At present,China’s economy is transitioning towards high-quality development,and the healthy development of physical enterprises is particularly important.In order to avoid the "transition from reality to emptiness" of physical enterprises,our government has issued a series of policies to regulate the financial investment behavior of physical enterprises.The pharmaceutical industry has a good development prospect,but in recent years,due to various factors,more and more pharmaceutical enterprises have allocated financial assets and carried out financialization.For pharmaceutical companies,how will financialization affect their performance? Considering that Yunnan Baiyao is a leading enterprise in the pharmaceutical industry and also a company with a high degree of financial meltdown in the pharmaceutical industry,this article selects Yunnan Baiyao as a case company to study the impact of its financialization on its own performance,which has certain research value and significance.This study consists of five parts.The first part is an introduction,including the research background and significance,content,methods,and innovation points of the paper.The second part elaborates the theoretical basis of this study from the theoretical level,and combs out the literature related to the topic of this article.The third part first introduces the basic situation of Yunnan Baiyao,and then systematically analyzes the motivation,process,and allocation of financial assets of Yunnan Baiyao.Jilin Aodong and Pianzihuang,which also carry out financialization in the pharmaceutical industry,are selected for comparative analysis.The fourth part,based on the relevant data of financial indicators and non-financial indicators in the2011-2021 annual report of Yunnan Baiyao,explores how the financialization of Yunnan Baiyao affects the financial performance and non-financial performance of the company,and attempts to analyze the impact of the financialization of Yunnan Baiyao on the corporate performance in a more comprehensive and detailed way by analyzing more corporate performance measurement indicators.The third and fourth chapters of this article are the core chapters of the paper.The last part is conclusions and recommendations.First,summarize the research conclusions of the full text,and then propose relevant recommendations on the financialization of physical enterprises from the enterprise level and the government level based on the conclusions.Research findings: First,Yunnan Baiyao officially launched its financialization in 2011,with a deepening trend in the overall degree of financialization.Specifically,its financialization process can be subdivided into three stages.Among them,the level of economic development,the profitability of enterprises,and management preferences are the main reasons for Yunnan Baiyao to carry out financialization.Secondly,the study found that the financialization of Yunnan Baiyao is not conducive to improving the company’s financial performance.By analyzing the financial performance indicators of different stages of Yunnan Baiyao’s financialization,it can be seen that the improvement of Yunnan Baiyao’s financialization level has a negative impact on corporate profitability,debt repayment,operational and development capabilities,as well as dynamic financial performance.Thirdly,the study believes that the financialization of Yunnan Baiyao also has a negative "crowding out effect" on non-financial performance such as research and development investment and industrial investment level.And as the degree of enterprise financialization deepens,excessive financialization leads to a decrease in the company’s attention to its main business,increasing the operational risk of the enterprise.Based on the above research conclusions,this article believes that Yunnan Baiyao should improve its awareness of financial risk prevention as soon as possible,and rationally allocate its own financial assets;At the same time,the government should strengthen the supervision of enterprise financialization and encourage Chinese entity enterprises to focus on their main businesses and entity investment.This article systematically analyzes the impact of Yunnan Baiyao’s financialization on corporate performance,enriching the research on the micro level of corporate financialization on corporate performance,and also provides some suggestions for Chinese pharmaceutical enterprises or other industry enterprises to carry out financialization,so that physical enterprises can fully exert the positive impact of moderate financialization in the process of financialization and avoid the negative impact caused by excessive financialization. |
