| In December 2016,the Central Economic Working Conference proposed to “focus on revitalizing the real economy” as one of the priorities for deepening supply-side reforms,clarified the development direction of the real economy and sounded the alarm for large-scale entities involved in the financial and real estate sectors;the report of the 19 th National Congress of the Communist Party of China also called for deepening the reform of the financial system,enhancing the ability of the financial sector to serve the real economy,improving the financial supervision system,and keeping the bottom line of avoiding systemic financial risks to avoid excessive financialization.The series of guidelines and policies proposed by the government show that the phenomenon of corporate financialization has attracted the attention of the country.At the same time,it also illustrates the universality of the financial development of China's physical enterprises,which deserves the theoretical and practical circles' attention and in-depth research.With the call of the Party Central Committee and the background of supply-side reforms,most of the real enterprises have begun to re-emphasize the development of their own real industries.The Youngor Group,once a giant in the apparel industry,has gradually begun to implement a strategy of de-financial development.Youngor has a long and complete course of financial development,which is innovative and typical.Through the development of financialization,Youngor Group has obtained the initial nurturing effect.It not only provides financial support for the integration of the upstream and downstream industrial chains of its main business,but also invests in other areas to bring rich profits to the enterprise and avoid capital.Idle and waste.However,due to the crazy pursuit of profit in the capital market,large-scale development of financial investment,real estate and other businesses has produced a backlash effect and occupied the main industry development funds.Not only has it lost its leading position in the main clothing industry,but also bears huge debts.Facing huge operational risks.This article adopts a case study method and selects Youngor Group as a specific analysis case.Based on the investment substitution theory,reservoir theory,squeeze-out effect theory,and principal-agent theory,it firstly analyzes the background,motivation,and economic consequences of Youngor's financialization.Through detailed analysis,it is found that the motivations of Youngor's financialization are: maximization of shareholder value,high returns on financial investment,and diversification of business operating risks.At the same time,this article also adopts appropriate methods to measure and distinguish the degree of financialization of Youngor.Through further analysis,it was found that the initial stage of financialization had positive consequences,reducing the overall risk of the enterprise,alleviating the pressure on the development of the industry,and creating synergies;later,due to its excessive investment,it also triggered negative consequences,inhibiting corporate innovation,causing the main business to shrink,Corporate earnings are highly volatile and corporate operating risks increase.Finally,through the review and analysis of the full text,this paper believes that moderate financialization can nurture the main business and promote the development of enterprises.Excessive financialization will backbone the main business and increase corporate risk.Therefore,it is suggested that enterprises should moderately participate in financial activities,pay attention to the development of the main industry and the industry cycle,and at the same time,the government should strengthen the policy support of physical enterprises.Through the analysis of Youngor's case,it is hoped that it can provide a certain reference for the subsequent financial development of enterprises. |
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