Research On The Impact Of Institutional Investors On The Financialization Of Manufacturing Enterprises

The financial sector and the real sector complement each other and develop together.Financial development can drive the growth of the real economy,which will further promote the development of the financial industry.However,with the rapid development of the financial industry,the financial industry has over-expanded,and non-financial companies have begun to enter the financial field,and there has been a "financialization" trend.The earliest such phenomenon occurred in the United States in the 1970 s.The financial industry developed rapidly,and its penetration and dominance in other industries continued to deepen,becoming the "core of the modern economy." As a result,people are paying more attention to "deconsolidation" and "financialization".In recent years,China 's economy has also exhibited the characteristics of “departure from reality”.The report of the 19 th National Congress of the People 's Republic of China also put forward the discussion of “financial services for the real economy”.We should also focus on prevention and control early.Financialization is manifested as economic financialization at the macro level and corporate financialization at the micro level.The financialization studied in this article is the corporate financialization at the micro level.A company's moderate investment in financial assets is conducive to enhancing its financial flexibility and solving shortterm financial difficulties,but excessive investment in financial assets will crowd out the investment needs of the company's main business and inhibit its innovation activities,which is not conducive to long-term development of the company.Since the rise of the shareholder power revolution,the profit-making class has become more and more powerful in the process of participating in corporate governance.In 2001,China also proposed to vigorously develop institutional investors.With the increase of its shareholding ratio,its participation in corporate governance The degree has also been continuously strengthened,gradually changing from "voting with your feet" to "voting with your hands" and starting to actively act as an effective external supervisor,but there are also some institutional investors who have speculative opportunities and use their voting rights to act as profit grabbers.,Has a certain impact on corporate asset investment behavior.Therefore,from the perspective of institutional investors,this article studies the impact of institutional investors and their heterogeneity on the financialization of manufacturing enterprises.The research finds that:(1)Institutional investor holdings have a depressing effect on the financialization of manufacturing enterprises.After further distinguishing between pressure-resistant institutional investors and pressure-sensitive institutional investors,it is found that pressure-resistant institutional investors Into a significant inhibitory effect,while the pressure-sensitive institutional investors' promotion of corporate financialization is not significant.(2)The inhibitory effect of institutional investor holdings on the financialization of enterprises is more pronounced in state-owned enterprises,and the pressure-resisting institutional investors have a stronger inhibitory effect on the financialization of state-owned enterprises.The promotion of non-state-owned enterprises' financialization is still limited.(3)In enterprises with a high degree of equity concentration,institutional investors' inhibition of corporate financialization is more obvious.Finally,relevant policy suggestions are put forward based on the research conclusions of this paper.Finally,this article puts forward relevant suggestions on the research conclusions:(1)For institutional investors,they should establish a long-term value investment concept,reduce investment opportunities,and actively participate in corporate governance;(2)For enterprises,they should strengthen long-term strategic cooperation with institutional investors and give full play to institutions Professional advantages of investors to achieve a win-win situation;(3)Government departments and all sectors of the society should be committed to fostering long-term stable institutional investors,and increase their speculative costs by implementing a differentiated tax system,stipulating a minimum shareholding period and limiting the turnover rate.,Reduce the investment behavior of short-term trading institutions,and promote the coordinated and healthy development of the physical sector and the financial sector.