Research On The Motivation And Economic Consequences Of Financialization Of Entity Enterprises

Based on the investment model of entity enterprise investment financial assets,this paper studies the motivations and consequences of non-financial enterprise financialization based on the existing research literature of non-financial enterprise financialization.In recent years,the overcapacity of the real economy has led to a significant decline in the return on investment of traditional industrial enterprises.A large amount of industrial capital has poured into the high-yield financial and real estate industries,and the virtual economy has accelerated its expansion,eventually leading to the financialization of the physical industry.According to statistics from Wind,the scale of financial assets purchased by listed companies has risen almost linearly.In 2012,it was only 7.1 billion yuan,reaching 800 billion in 2016,and in 2017 it was 1.35 trillion.The number of listed companies buying wealth management products reached 1221 households accounted for 34% of all listed companies in the year.This shows that non-financial companies have become a phenomenon that cannot be ignored in the financial sector.However,in stark contrast to the rapid development of corporate financialization in the real world,the academic research on corporate financialization is obviously lagging behind,and there are differences in the research conclusions on the motives of corporate financialization and its economic consequences.In view of this,this paper will explore the motives of the financialization of China's entity enterprises and the impact on the future capital investment of enterprises from the perspective of corporate financial asset allocation structure,which will help to further deepen the theoretical system of corporate financialization in China.First of all,this paper examines the motives of financialization of entity enterprises.The empirical test results show that when monetary policy is loose,enterprises will reduce their short-term financial assets.This paper considers this to be a self-interested behavior of managers.When the monetary policy was loose last year,compared with long-term financial assets,the short-term financial asset prices will have large fluctuations,and the manager's appointment time is limited,so the company will sell a large amount of short-term financialassets.Guarantee the maximization of their own in-service interests.That is to say,for enterprises,the motivation for investing in financial assets is mainly speculative arbitrage.In the second part,this paper examines how corporate financialization affects future capital investment.The test results show that corporate financialization will squeeze out future capital investment,and long-term financial assets will have a stronger crowding out effect on future capital investment.The financial capitalization of corporate capitalization is mainly due to the allocation of a large number of long-term financial assets.The third part focuses on how the financing constraint affects the relationship between corporate financialization and future capital investment,and finds that the negative impact of the allocation of financial assets on future capital investment by enterprises with lower financing constraints than those with higher financing constraints.More serious,research on the structure of financial assets found that companies with lower financing constraints are more inclined to use long-term financial assets speculative arbitrage to significantly squeeze out their future capital investment,because long-term financial assets can not only ease the financing constraints of enterprises.The problem,and will occupy the production and operation funds of the enterprise for a long time,and thus the impact on the future capital investment of the enterprise is more significant.This paper systematically studies the financialization of enterprises and finds that Chinese enterprises mainly allocate financial assets,especially long-term financial assets,for speculative arbitrage,so they will significantly squeeze out future capital investment expenditures,but short-term financial assets can be effective by virtue of their own advantages.Reduce the negative impact on the production and operation of the entity.The conclusions of this paper can provide theoretical guidance for entities to invest in financial assets,help enterprises to more effectively use financial instruments,and enable regulators to more specifically monitor the financial investment of entities,so that financial services can be economically economic,avoiding financial and The divergence of the real economy.