Study On The Entity-Enterprises' Financial Investment And Risk-taking

In recent years,with the rapid development of the financial industry and the dramatic expansion of financial assets,many entities have started to integrate their business activities and turned to financial investment activities,even though investment returns have fluctuate sharply as financial markets fluctuate.However,they are free travel in physical and financial industries,and use the dividend of financial investment to reduce the uncertainty of operating income.In this way,in the face of the limited development of the primary industry and the dividends of financial development,the entity companies are gradually pursuing financial expansion and gaining financial benefits.The main industry is gradually being eroded and take more risks.The effect of financial activities on business activities gradually shifts from a complementary effect to a crowding-out effect,and the real economy has a situation of "turn to the fictitious economy investment".This paper selects A-share listed companies from the year of 2011 to 2016 as samples and does empirical tests to explain the connotation of financial investment in entity companies and analyze the concrete performance of entity companies in the situation of "turn to the fictitious economy investment"� First,this paper studies the relationship between the financial investment of entity companies and their risk-taking.Second,it analyzes the important factors affecting the relationship between the entity's financial investment and its risk-taking.Finally,it discusses the difference of the relationship between the financial investment and the risk-taking of entity companies with different investment efficiency.This paper comes to the conclusion.(1)Under the same other conditions,there is a "U" relationship between the degree of financial investment and the level of risk-taking,and most enterprises are on the right side of the "U" relationship;(2)The nature of property rights can regulate the relationship between the degree of financial investment and the risk-taking level of the entity.For non-state-owned enterprises,the "U" relationship between the degree of financial investment and the level of risk-taking of the entity is more significant;(3)The leverage ratio has a moderating effect on the relationship between the degree of financial investment of the entity and the level of risk-taking.For a low-leverage entity compared to a high-leverage entity,the "U" relationship between the degree of financial investment and the level of risk-taking is more significant;(4)There is a difference between the degree of financial investment and the level of risk-taking of the entity enterprises with different investment efficiency,and the relationship between the degree of financial investment and the level of risk-taking is even more significant for entity enterprises with low investment efficiency.Therefore,based on the above research and analysis,the following suggestions are proposed in the following article:Firstly,entity companies should make appropriate financial investment,reasonably allocate and rationally use capital in business activities and financial activities to achieve the integration and complementarity of business activities and financial activities;Secondly,entity companies should attach importance to risk management and risk assessment mechanisms;Lastly,the establishment of government departments needs to conduct top-level design to avoid the real economy becoming "realistic",reduce the financing cost of the real economy,guide the entity companies to carry out financial investment,strengthen risk monitoring and management,and prevent the real economy from becoming hollow.