A Correlation Study On The Financial Performance Of Manufacturing Listed Companies And Business Performance

In recent years,the degree of China's economic financialization become more and more strengthen.The proportion of financial industry profits accounted for total industry profits had a substantial increase,manufacturing industry rate of profit had declined.From 2007 to 2014,the financial company accounted for less than 2% of the total number of A-share listed companies in China,but it's total net profits accounted for the proportion of total net profit of listed companies increased from 39.72% to 56.36%.The economic financial of our country is not only reflected in the growth of the financial industry and the expansion of the scope of its business,but also reflected in the financial behavior of Listed Companies in manufacturing.As the main supporter of the real economy,manufacturing listed companies mainly provide products and non-financial services to the society.However,with the decrease of the profit rate of the real estate industry in China,a large number of manufacturing listed companies have begun to actively invest in financial assets and participate in financial activities in recent years.As the basis of economic development and stability,the listed companies of manufacturing industry are the important problems that should be paid attention to in the key period of economic transition.Benign cycle of industrial capital and financial capital is an important driving force for economic development,The experience of developed countries has repeatedly proved that the excessive virtualization of the real economy and financial,is the main reason for the outbreak of the financial crisis.By fanatical investing in the virtual economy can only lead to the decline of the real economy and exacerbating the economic crisis.China's manufacturing industry has entered a critical stage of transformation and upgrading,Although the phenomenon and problems of manufacturing finance have been concerned,they have not been paid enough attention,research on the investment behavior of the manufacturing industry is of positive significance to promote the healthy and sustainable development of the enterprise.For the listed companies in the manufacturing sector to participate in financial activities to obtain more than their industrial investment income and the impact of financialization on enterprise operation performance,foreign scholars did not give a clear conclusion.Domestic scholars have little research on the relationship between financialization and performance.Based on this,at the beginning of the article proposed questions,the research background and significance and research ideas and framework.Next,summarized the literature of domestic and foreign scholars and expounds the related theories.Then,through the empirical study of all A share manufacturing listed companies in China,Our results show that there is an inverse U-shaped curve between financialization and operating performance.Combined with the case of FSL,the paper analyzes the degree and influence of the financialization,the financialization degree of FSL is negatively correlated with its operating performance,based on empirical results,the relation is on the right side of the inverted U type.Too high degree of FSL's financialization has a negative impact on operating performance.Finally,the conclusions are summarized and some suggestions are put forward,this paper argues that we should guide the financial services to the real economy,strengthening financial support for manufacturing,meanwhile,improving capital market,reshaping the financial policy paradigm and curbing financial speculation,Prevent excessive financialization adverse impact on operating performance.