Corporate Financialization,Life Cycle And Operational Performance

In the past three decades,the wave of financialization has risen globally and has an increasingly important impact on the development of the global economy.Financialization is affecting the economic system from the macroeconomic level of “financial financialization” and the micro level of “enterprise financialization”.In recent years,China's economy has entered a transitional stage.Under the background of the “new normal” of the economy,the economic growth rate has shifted from high-speed growth to medium-to-high-speed growth.Some entities have turned their attention to the rapidly expanding financial sector in order to get rid of the pain of economic transformation.While obtaining high returns through financial investment to improve business operations,it also leads to an increase in the number of financial assets held and an increase in the dependence on financial assets,which exposes entities to certain financial risks.However,the real economy is the foundation of the development of the national economy,and the entity enterprise as a key part of the real economy,its development is directly related to the sustainable development of China's economy.In the context of China's economic financialization,the financialization of entity enterprises is gradually becoming a new trend,but financialization is a “double-edged sword” for enterprises.While obtaining high returns for enterprises to improve profitability,It also has different degrees of impact on the company's main business.Therefore,to explore the impact of corporate financialization on the performance of entity enterprises and whether this impact is different for enterprises in different life cycles,it has very important theoretical and practical significance for the healthy development of China's real economy.Based on the above research background,the focus of this paper is to pay attention to the relationship between corporate financialization and main business performance,and to explore whether there is a significant difference in the impact of corporate financialization on its business performance from the perspective of enterprise life cycle.The main research contents of this paper are as follows:Firstly,based on the status quo of China's economic financialization,this paper analyzes the status quo of the financialization of China's entity enterprises from the three aspects of the main business performance,asset financialization and income financialization of the entity,and the results show that the Chinese entity's financial investment The dependence is getting stronger and stronger,showing a certain degree of financialization.Secondly,from the perspective of enterprise life cycle,this paper empirically tests the impact of China's entity financialization on its business performance.The results show that,firstly,there are significant differences in the performance of different life cycle enterprises.Among them,the growth performance of the longterm enterprises is the best,the performance of the mature enterprises is second,and the performance of the enterprises in the recession is the worst.Second,due to the combined effect of “reservoir” and “extrusion” effects,there is an inverted U-shaped relationship between the degree of financialization of enterprises and business performance,that is,the impact of financialization on business performance changed from promotion to inhibition with the deepening of the financial degree of enterprises.Third,relative to the growth enterprise,the financialization of mature enterprises and recession enterprises is more conducive to their business performance.Finally,the paper further explores the impact mechanism of corporate financialization on the business performance of different life cycle enterprises.The results show that the impact of financialization of different life cycle enterprises on business performance includes enterprise innovation,fixed asset investment,financing constraints,market competition,and macroeconomic growth.Based on the conclusions of the research,this paper proposes from the policy level and the enterprise level respectively: First,the policy level.It is recommended to supervise the financial investment behavior of the entity,so that the enterprise can rationally allocate financial assets,so as to play the role of the financialization of the enterprise to promote its business performance,so as to prevent the enterprise from falling into excessive investment in financial assets and from the main business to inhibit business performance.In addition,differentiated supervision and management can be implemented for enterprises in different life cycle stages,and the behavior of enterprises deviating from the main business should be promptly warned and rectified to better support the growth of the entity and promote the development of the real economy.The second is the enterprise level.Enterprises should establish the concept of financial asset investment as the main business development service,clarify their life cycle stage and business development orientation,and properly handle the proportion of resources between the main business operation and financial asset investment to achieve the function of promoting main business through financialization.