Motivation And Financial Risk Of Listed Companies' Financial Asset Allocation

With the development of China's economic structure,non-financial enterprises,such as the manufacturing industry,are facing the downward rate of return while virtual economies such as the financial industry have high returns.So many listed companies purchase financial assets with idle funds.Financial assets can increase liquidity and can also be used for speculation.Listed companies will allocate financial assets with different maturities for"reservoir" motivation or "replacement" motivation.,and that will also affect the financial risks of enterprises differently.Based on the above,this paper selects the data of A-share listed companies in China over 2008—2018 and empirically tests the motivation and financial risks of financial asset allocation of non-financial listed companies.The results show that:(1)Non-financial enterprises buy short-term financial assets for "reservoir" motivation and long-term financial assets for "replacement" motivation.(2)Short-term financial assets reduce corporate financial risks,long-term financial assets increase corporate financial risks,and an increase in total financial assets also increases corporate financial risks.The suggestions of this paper provide reference for non-financial enterprises to allocate financial assets to serve their main business and prevent the expansion of financial risks.