Analysis On The Motivation And Effect Of Financialization Of Shanghai RAAS Corporation

Since the 1980 s,the rise of economic liberalization and the relaxation of financial controls have made the financial industry an important force driving economic growth.The degree of financialization of real enterprises is gradually deepening.The calculation results of financial asset holding ratio and financial income ratio of Shanghai and Shenzhen A-share non-financial listed companies in a narrow sense from 2011 to 2020 show that both from the perspective of asset structure and income source,my country’s non-financial enterprises as a whole have corporate finance gradually deepening phenomenon.Shanghai RAAS is a typical case of corporate financialization.Its main financialization behavior is to invest in capital market stocks through the secondary market,the block trading market and the collective trust fund plan.In the early stage of financial investment,the company obtained high investment income,but due to capital market fluctuations and negligence in risk control,it began to lose money in 2017,and the investment loss in 2018 was nearly 1.4 billion yuan.This paper measures the level of corporate financialization of Shanghai RAAS from the perspectives of asset structure,profit source and cash flow.The results show that the level of corporate financialization has exceeded a reasonable range.In contrast,the measure of financial asset holding ratio is more In line with the actual financial situation of the company.Combining the actual situation of Shanghai RAAS,this paper analyzes the motivation of the company’s corporate financialization from both internal and external perspectives.The external motivation includes the macroeconomic environment and the stocks invested by Shanghai RAAS are bullish,and the internal motivation is mainly the major shareholder.The pledge of shares,the increase of idle funds,the rise of management background and the status of the industry,contrary to the original intention of serving the main business,will inevitably bring negative effects to the company in many aspects.This paper deeply analyzes the effect of corporate financialization on the corporate value,financial risk and stock price of Shanghai RAAS.The research results show that in the initial stage of corporate financialization,financial investment profits increase corporate value,but in the later stage of corporate financialization,investment losses turn economic value-added from positive to negative,and corporate value gradually recovers after exiting securities investment;the financialization of corporates promotes the improvement of the financial situation,but the financial risks gradually increase after the deepening of the degree of financialization.This paper explores the short-term impact of corporate financialization on stock prices by introducing the event study method.The results show that the stock price rises in the short term on the announcement date of financialization behavior,and the market has a positive reaction.Finally,according to the conclusion of the case study,this paper gives corresponding countermeasures.Enterprise managers should reasonably measure their own financialization level and control it within a certain range,deepen the development of main business,and do a good job in internal control of financial risks.Supervisors should formulate regulatory policies to prevent over-financialization of enterprises,and the government should also strengthen regulation to guide the flow of funds to the industrial sector and promote the development of real enterprises.Investors in the capital market should adhere to the concept of value investment,analyze the long-term impact of corporate financialization on the company,and make reasonable investment decisions.