Research On The Influence Of Independent Directors With Financial Background On Corporate Financializatio

The party’s 20 th report clearly stated that “building a modern industrial system,adhere to the focus of economic development on the real economy,promoting new industrialization,and accelerate the building of a manufacturing,quality,space,transportation China”.However,at the moment when the real economy is cold,the virtual economy is in a countercyclical upward trend,and the return rate of financial investment is high.Driven by capital profit-seeking motivation,real enterprises allocate a large number of financial assets or invest in real estate.Due to the interaction between the real economy and virtual economy,once the money into the financial system is easy to lead to cycle and even “idling”,it will erode the development of industrial economy,entrepreneurs affect the enthusiasm of the real economy and transformation and upgrading,the rapid expansion of the financial,real estate industry is boosting the financialization phenomenon intensified.Since the introduction of the independent director system in China,independent directors who are not attached to or subject to any interest group are regarded as an important role in protecting the interests of investors and effectively supplementing the position of objective independence and impartiality in the absence of internal supervisors.However,now their role in providing decision-making and consulting resources for enterprises has become more and more obvious.In this context,exploring the influence of independent directors on the financialization of enterprises is helpful to clarify and supplement the factors of enterprise financialization,promote the improvement of corporate governance level,and alleviate the structural imbalance between the virtual economy and the real economy from the micro-enterprise level and policy recommendations.Taking Chinese A-share listed companies from 2008 to 2021 as A research sample,this paper examines the impact of independent directors with financial background on the financialization of real enterprises.The research ideas and logic are as follows: First,clarify the development status of enterprise financialization in China,and analyze the mechanism of independent directors in financial background in influencing enterprise financialization with the background characteristics of independent directors as the breakthrough point.Second,the empirical test of the influence of independent directors of financial background on the financialization of enterprises,and a series of robustness tests including the control of endogenous issues.Thirdly,the influence mechanism of independent directors on the financialization of financial background is screened from the perspective of individual ability and social relations,and specific ways are further explored.Fourthly,according to the property rights characteristics of enterprises,risk bearing capacity and external institutional environment,the heterogeneity of independent directors in financial background under different conditions is analyzed.Finally,the above theoretical analysis and empirical conclusions are summarized to deeply explore the specific ways to improve the level of enterprise governance.The study shows that:(1)independent directors with financial background have played obvious consulting functions,and the financialization degree of enterprises has been significantly improved.(2)The test of influence mechanism shows that the use of social relationship network to obtain credit resources is the main way for independent directors of financial background to play an advisory role in enterprise financialization,which is specifically manifested in increasing the corporate credit scale and reducing the corporate credit cost.(3)The heterogeneity test shows that in enterprises with non-state-owned property rights,strong risk bearing ability and imperfect external institutional environment,independent directors with financial background play a more obvious role in promoting the financialization of enterprises.(4)Improving the enterprise internal control system,reducing the concentration of equity,improving the degree of equity balance,hiring the "international four major" auditors and increasing institutional investors can effectively alleviate the financial background of independent directors and promote the financialization of enterprises.This paper not only enriches the theoretical research in the fields of enterprise financialization and independent director system,but also has important reference significance for deeply understanding the role of independent directors in corporate governance,guiding the economy to “get rid of the virtual and return to the real” and preventing systemic financial risks.