The Impact Of Financialization Of Manufacturing Enterprises On Their Financial Performanc

Manufacturing is one of the important industries in the real sector,but in recent years,the high rate of return in China’s financial field has attracted a large number of investment funds from manufacturing enterprises,which has led to the financialization of manufacturing enterprises.It is generally believed that a certain degree of financialization help enterprises through to obtain financial asset investment income ease financial difficulties,and by "reservoir" effect feedback enterprise,however,if the manufacturing enterprises based on the profit motive excessive investment with high risk characteristics of financial assets,will "crowd out" effect on industrial investment.In addition,the financialization of enterprises will also affect the financial performance of enterprises by affecting the innovation level of enterprises.Based on this,this paper takes physical investment and enterprise innovation as two intermediary transmission variables of financialization affecting enterprise performance,and discusses the influence of financialization on financial performance of manufacturing enterprises,which is conducive to fundamentally guiding enterprises to formulate reasonable asset allocation strategies.Through literature review and theoretical basis,this paper studies the impact of financialization of manufacturing enterprises on corporate financial performance from the following four aspects:(1)Does the influence of financialization of manufacturing enterprises on financial performance show an inverted "U" pattern?(2)What is the relationship between financialization of manufacturing enterprises and financial performance under the influence of corporate entity investment rate?(3)What impact will financialization of manufacturing enterprises have on enterprise financial performance while affecting enterprise innovation level?(4)Does the degree of financing constraint have a moderating effect on the relationship between financialization and financial performance of manufacturing enterprises?This paper selects the annual data of 1103 listed manufacturing companies in China A-share market from 2010 to 2019,and obtains the annual observed values of 11,030 companies,and uses stata15 to conduct empirical research on the model.The regression model was constructed with financial performance as the explained variable,financialization degree as the core explanatory variable,entity investment rate and enterprise innovation level as the intermediary variable,and financing constraint level as the moderating variable.The regression results showed that:(1)The financialization and manufacturing enterprise appears inverted "U" shaped relationship between financial performance,including u-shaped bending point of about 25.49%.The sample sizes on the left and right sides of the deflection point show that the moderate financialization of most Chinese manufacturing enterprises is conducive to the improvement of financial performance;(2)Moderate financialization can improve corporate financial performance by increasing corporate entity investment rate and improving corporate innovation level.The two intermediary transmission variables can explain 12.60% and 10.50% of the impact of corporate financialization on corporate financial performance respectively.(3)The higher the level of financing constraints,the more obvious the negative moderating effect on the relationship between financialization and financial performance;(4)The regression results of the classified samples show that moderate financialization has a more obvious promoting effect on the financial performance of manufacturing enterprises in eastern China,while excessive financialization has the most obvious inhibiting effect on their operating financial performance.Finally,this paper puts forward the reform of financial supervision mode and rational allocation of financial assets,improve the investment income of manufacturing entities,strengthen the protection of R&D and innovation achievements,relieve the financial difficulties of enterprises,coordination of regional economic development and other relevant countermeasures.