Empirical Study On The Influence Of Non-financial Enterprise Financialization On Industrial Investment

The trend of economic financialization first spread abroad.After decades of development,the degree of domestic financialization is gradually deepening,and it has affected the development of physical enterprises.The earliest definition of financialization was Krippner(2005).He believed that financialization mainly refers to the fact that the profits of physical enterprises come from the financial sector rather than the production sector of the physical enterprise.There are also scholars who define it from both macro and micro perspectives,so that they can have a preliminary understanding of the concept of financialization.In recent years,with the deepening of economic reforms,a new normal has emerged in our economy.The real economy's response to this is to carry out structural transformation,the industrial investment rate continues to decline,and industry competition is becoming increasingly fierce.It is in this market competition environment that in order to maintain and improve their operating performance,some non-financial companies have begun to shift their investment focus to the financial field,hoping to obtain high returns from the financial market,and then improve their internal performance.However,such investment bias may lead to the majority of cash flow to financial markets,leading to excessive financialization.Therefore,"financialization" is like a double-edged sword.While it brings cash flow to real enterprises,it also has great hidden dangers.If it develops excessively,it may hinder the development of the real economy,and the real industry will eventually appear."Hollowing" phenomenon.Therefore,from the perspective of sustainable development of non-financial enterprises,it is of great significance to study the impact of non-financial enterprises' financialization on industrial investment.In the selection of research perspectives,the article starts from the point of financial income and expenditure,and separately demonstrates the impact of non-financial enterprise financialization on industrial investment.In terms of theory,the article first analyzes preventive savings theory,financing constraint theory,and principal-agent theory.,To provide theoretical support for the study of the impact of financialization on industrial investment;secondly,based on the literature research made by scholars at home and abroad,first define the concept of financialization,summarize the factors affecting financialization,and finally the financialization of non-financial enterprises and A preliminary judgment is made on the relationship between industrial investment,and it is believed that financialization may have a crowding-out effect or a "reservoir effect" on industrial investment.In terms of expressing the facts of financialization,the article focuses on the allocation of financial assets and the proportion of holdings to show the phenomenon of financialization of non-financial enterprises in China,and concludes that the degree of financialization in China has been deepening in recent years.In terms of empirical research,the article selects an indicator from the perspective of income and expenditure as the dependent variable,that is,financial profit and financial payment ratio.Based on these two indicators,the executive equity incentives and financing constraints are used as moderating variables,and the actual sample is divided into The research is conducted for two parts,and the multiple linear regression model is used to prove whether the deepening of the financialization of non-financial enterprises will have a squeeze or promotion effect on industrial investment.Finally,the income and expenditure indicators were replaced by financial asset holding ratios,and a robustness test was performed to make the conclusion more convincing.After research,it is concluded that:(1)Regardless of the impact of moderating variables,when the degree of financialization is deepening,the impact on industrial investment generally appears as a "crowding effect",and the effect becomes stronger with the deepening(2)After considering the adjustment variables,the deepening of financialization may have an insignificant effect on the role of industrial investment.From a practical point of view,the article provides reasonable policy recommendations based on the above empirical results from the aspects of market supervision,system risk,and asset allocation.