A Political Economic Research On The Impact Of Financialization Of China's Non-financial Enterprises

Since the reform and opening up,China has completed the transition from a highly centralized planned economic system to a energetic socialist market economic system.Market mechanisms,including the financial system,have begun to play a decisive role in resource allocation.However,in recent years,especially since the 2008 international financial crisis,major changes in the relevant financial dimensions of China's corporate level have prompted us that financial development and the deepening of relationship between finance and physical enterprise does not necessarily lead to the development of real business.The impact is of positive and negative duality.Financial development provides enterprises with more diversified financing channels.However,the leverage ratio of non-financial enterprises in China has shown excessive growth,bringing huge risks.Financial market development and tool innovation have provided enterprises with more investment choices.However,China's physical enterprises have generally been keen on various financial products,trust and loan financial assets,and have raised concerns about the "off the real to the virtual" The role of finance in the development of physical enterprise is increasingly important,and the relationship between finance and physical enterprise is deepening.What is the impact of this process on the real business of physical firn,and what 1s its mechanism,which has become a important study in the current economic development of China.This research focuses on the micro-subject,non-financial enterprises,and studies the impact of the deepening relashiP between physical enterprise and finance on enterprise's real business.The existing research mainly focuses on the dimensions of financial assets and financial income,and studies on the financialization of non-financial enterprises on capital accumulation,enterprise innovation and production efficiency.This study studies the impact of financialization of non-financial enterprises on capital accumulation,enterprise innovation and production efficiency from the more diversified financial dimensions such as financial asset holding,financial income,debt financing,financial expenditure,and shareholder value orientation.Moreover,the impact of financialization of non-financial enterprises on labor employment and labor income share is studied.In the process of analyzing the mechanism,it pays attention to applying the classical analysis of Marxist political economy,Paying attention to analyzing the interests of different stakeholders such as ordinary laborers,company managers and shareholders,and paying attention to analyzing the public nature of enterprises to protect the interests of workers,all of which reflects the attributes of Marxist political economy.On the basis of theoretical analysis,the author based on the micro-data of non-financial listed companies in China,made a quantitative estimation of the financial economic impact of non-fmancial enterprisesThis study consists of nine chapters,which can be divided into three parts research basis,main content and research summary.Among them,the first part includes Chapters 1 to 3,including the introduction,analysis basis,relevant factual description and literature review,as the basis for the specific research of financialization of non-fmancial enterprises.The second part includes Chapters 4 to 8 From the specific dimensions of financialization,the paper studies the impact of non-fmancial fmancialization on corporate capital accumulation,labor employment,labor income distribution,enterprise innovation and production efficiency.The third part includes Chapter 9,covering research conclusions,policy recommendations,and research outlook.Among them,chapter 1 introduces the research background and issues,research significance,research ideas,main content and framework,and possible innovations.Chapter 2 explains the implications of the concepts of financialization,non-financial corporate fmancialization,and financial impact of non-financial corporate financialization.Marx's analysis on the different forms of capital movement,the western economics about the capital structure of the company,and the analysis of heterodox's analysis on financialization are introduced in.The political economic character of this study is explained from the research focus,the theoretical use in the analysis,the analysis of the relationship between different groups of interests,and the role of the public nature of the enterprise.Chapter 3,from the three dimensions of financial assets,financial liabilities,and shareholder value orientation,describes the financialization of non-financial companies in the United States,Britain,Japan,and the BRICS countries.The literature on the economic impact of five aspects of enterprise is reviewed.Chapter 4 draws on the existing research and constructs a theoretical framework that explains capital accumulation of enterprises,including financial assets holding,real estate holding,debt financing,and shareholder value orientation.It focuses on the analysis of financial assets's "squeezing physical investment" and "the effect of reservoirs" for capital accumulation,the "expansion effect of available funds" and the "trapping effect of debt payments" for debt accumulation,and the "increased effect of equity value" and the "effect of industrial capital utilization efficiency improvement" for shareholder value orientation,using the data of non-financial listed companies in China to quantify the actual effects of each dimension.The study found that financial assets and shareholder value orientation have no significant impact on capital accumulation,but real estate holdings and debt financing have a significant negative impact on capital accumulation.Chapter 5,drawing on the existing research,studies the impact of financialization on labor employment in three dimensions:financial assets,financial liabilities,and shareholder value orientation.It focuses on the "crowding out effect"and "reservoirs effect" of financial assets on labor employment,the "scale expansion effect" and "debt burden effect" of financial liabilities for labor and employment,the"reduction effect of labor status" and the "enhancement effect of competitiveness" for labor employment,the actual effects of dimensions were quantitatively estimated by using Chinese listed company data.The effects of real estate investment,corporate property nature and Job heterogeneity on basic regression results were further studied.The study finds that financial debt channels have a significant positive impact on labor and employlent.Shareholder value orientation has a negative impact on labor employment,but its role is mainly reflected in private enterprises.The impact of financial asset channels on labor employment is not significant,but real estate holdings have significant negative impact on labor employment.The three dimensions have no significant impact on different jobs.Chapter 6 draws on the existing research to study the impact of financialization of non-financial enterprises on labor income share from three dimensions:financial motive,financial income and financial expenditure.It analyzes the maximization mechanism of financial motives,the make-up mechanism of financial expenditure,and the exit option mechanism of financial income affecting the labor income share,and the impact is estimated based on the data of listed companies.Furthermore,the effects of different labor income share,labor heterogeneity and corporate property rights on the basic regression results were studied.The study found that financial incentives have a significant negative impact on labor income share,and the impact of financialization on income distribution is beneficial to capital.Financial motivation and financial income have a significant negative impact on ordinary workers and executives,but the impact on executives is minimal.The negative impact of financial motives on labor income share is reflected in private enterprises,reflecting the public property's protection of workers.Chapter 7 draws on the existing research,from the three dimensions of financial assets,financial liabilities and shareholder value orientation,studies the impact of non-financial financialization on corporate innovation,and explains the"reservoir effect" and "crowding out effect" of financial assets on enterprise innovation,the "mitigation of financing constraints effect" and "debt burden effect"of financial liabilities to corporate innovation,the "residual value production effect"and "business strategy transformation effect" of shareholder value orientation for enterprise innovation,and the effect is estimated by using China's non-Financial listed companies data.It further examines the impact of financialization on the proportion of innovation activities,as well as the impact of real estate investment and property heterogeneity on basic regression results.The study found that financial liabilities in general have a significant positive effect on the scale of enterprise innovation.Shareholder value orientation has no significant impact on corporate innovation.Financial assets have no significant impact on corporate innovation,but real estate investment has a significant negative impact on the size of corporate innovation.Chapter 8 draws on the existing research to study the impact of non-financial financialization on the production efficiency of enterprises from the perspective of debt financing,and explains the capital accumulation channels,human capital channels,research and development channels,and the mechanism of debt financing.The data of listed companies have been used to quantitatively estimate their impact.Furthermore,the impact of debt financing structure,equity financing,and the property rights of enterprises on the basic regression results was examined.The study found that China's non-financial corporate debt financing has a significant positive impact on corporate productivity.According to the channels,the impact of capital accumulation channel is significantly negative,and human capital and research and development channel are significantly positive.The impact and significance of short-term and long-term debt financing and equity financing on production efficiency are the same as the basic regression results.The negative effect of capital accumulation channel on production efficiency and the positive effect of human capital channel on production efficiency are established for both state-owned enterprises and private enterprises.The impact of research and development channel on production efficiency,state-owned enterprises are not significant,and private enterprises are significantly positive.Chapter 9 summarizes the research conclusions,proposes corresponding policy recommendations,and looks forward to the future research.This study provides us with a more comprehensive and in-depth understanding of the multidimensional dimensions of China's financialization of non-financial enterprises and their wide-ranging impacts.This study is benefical for us to design and implement more targeted institution and policy measures to achieve the development from financial development to the real economy.