Research On Non-Financial Corporations' Investment Behavior To Listed Financial Enterprises

A large number of scholars have found that,the financialization of the national economy and the prosperity of the financial industry are an important cause of the economic crisis.Since the new century,the financialization of China's economy began to start.There exist two ways on the study of economic financialization,the macro and micro perspective.This article studies economic finance from the micro perspective.The related research is mainly from the perspectives of financial assets and profit sources of to measure the degree of financialization.This article is based on the top ten shareholders of listed financial enterprises,studying how many non-financial enterprises have invested listed financial enterprises,so as to figure out the degree of financialization of China's economy.In order to analyze the factors that affect the investment behavior of the non-financial corporations,this paper makes four assumptions and summarizes the factors,which are non-financial enterprise profitability,the facilitation of financing,shareholder value maximization and industry boom degree.This paper finds that more and more non-financial corporations invest financial enterprises.However,compared with the proportion of the United States which is nearly 40%,the China's degree is still acceptable.This paper finds that the non-financial enterprise profitability,the facilitation of financing,shareholder value maximization and industry boom degree will significantly affect the behavior of non-financial corporations to invest listed financial enterprises.When the profit margins is quite high and the financing costs is low,many listed non-financial corporations began to do other work,or began to do financial investments in order to improve the efficiency of idle funds.The facilitation of financing significantly affects the behavior of the nonfinancial corporations investing listed financial enterprises.But on the contrary to the assumption,the stronger financing capacity of listed financial enterprises is,the greater the proportion of shares held by listed non-financial enterprises.The maximization of shareholder value affects the behavior of nonfinancial corporations' investment in listed financial enterprises.When the enterprise is undervalued,the managers concern more about the shareholder value and they will be more motivated to invest in financial enterprises.The relationship between the degree of industry boom and the behavior of financial investments is more complicated.The higher the status of enterprises in the industry is,the less listed non-financial corporations invest in financial enterprises.When the enterprise is of overcapacity,it will invest more in listed financial enterprises.The lower the growth rate of net profit is,the more the nonfinancial corporations will invest in financial enterprises.