Research On The Economic Consequences Of Enterprises' Financialization

The financialization of enterprises is an important manifestation of economic degeneration.China's financial industry is represented by the banking industry,and has maintained a high return on assets under the policy background of interest rate control.At the same time,real estate companies have shown prosperity for nearly 15 years in the process of urbanization.The profit-seeking nature of capital has enabled entities to reduce their investment in industry and more participate in capital arbitrage activities and real estate investment.Scholars at home and abroad have rich research content on financialization,but the existing research mainly starts from the financial financialization of the economy at a macro level(from reality to imagination).The causes of the phenomenon of financialization and the impact on the national economy are all involved..This paper conducts a more comprehensive analysis of related research on corporate financialization,enriches its theoretical framework based on existing literature,adds corporate financialization paths,considerations,and other content,and uses case analysis as a research tool to further explore corporate financial The impact of globalization on the individual level of the enterprise,enriching the theoretical research on the micro level,redefining the financialization of the enterprise,giving detailed identification and measurement methods,and the impact of the financialization of the enterprise from the perspective of path,economic consequences,consideration factors and risk response Analyze and summarize the theory.This article selects Youngor as a case study company for corporate financialization.Youngor is a clothing,real estate and investment business in parallel.It participates in financialization through two paths:equity participation in holding financial institutions and investment in real estate,which has significant corporate financial characteristics.The economic consequences of corporate financialization for Youngor are as follows:First,the short-term investment return rate rises,and investment returns increase.Second,Focus on short-term returns and affect the implementation of long-term strategies;The huge volatility of financial investment and real estate business income has led to the inability of companies to guarantee the sustainability of their accounting surpluses,and thus fail to provide long-term stable cash flows to implement long-term strategies.In the pursuit of short-term performance,corporate value is even more damaged.Third,Suppressing industrial investment leads to centrifugal diversification;Youngor's three-pronged development model of apparel,real estate,and financial investment is the centrifugal diversification of corporate financialization.Financialization encroached on industrial development resources and inhibited industrial investment.Fourth,Maximizing shareholder value and ignoring the fulfillment of social responsibility.From the perspective of social responsibility,Youngor's long-term high-value cash out during the financialization process directly squeezed the interests of small and medium shareholders;financialization caused the development of the physical industry to be restricted,and companies chose to reduce ordinary Employee salaries reduce operating costs.There are advantages and disadvantages to the financialization of enterprises.Enterprises need to make financial investment prudently,deal with risks well,and follow the "moderate" principle.The government should start from the financial side and the physical side to guide the healthy development of the economy.