The Nonlinear Impact Of Financialization Of Entity Firms On Total Factor Productivity

As the micro main body of China’s economy,real enterprises mainly provide products and non-financial services to the society.Driven by preventive motivation and arbitrage motivation,enterprise financialization has developed into an important trend of resource allocation of real enterprises in China.With the continuous development of the financial market,entity enterprises also have increasingly prominent problems in the process of rapid development.The existing research focuses on the linear relationship between enterprise financialization and total factor productivity,then whether there is a nonlinear relationship between them,and what is the mechanism of this nonlinear relationship? At present,there is no systematic and in-depth discussion on this.Therefore,this paper focuses on "whether there is a nonlinear relationship between the financialization of real enterprises and total factor productivity,and what is the general form of this nonlinear relationship",which is of great significance to improve the theory of financial resource allocation and realize high-quality economic development.By analyzing the theoretical mechanism and constructing an empirical model,this paper studies the nonlinear impact of China’s real enterprise financialization on total factor productivity.Firstly,it introduces the research background,ideas,contents,methods and significance,and summarizes the relevant existing literature.Secondly,starting from the objective level of moderate financialization dominated by preventive motivation,this paper discusses the moderate level of enterprise financialization,and puts forward nonlinear assumptions according to theoretical analysis.Thirdly,the relevant data of Shanghai and Shenzhen A-share listed companies from 2007 to 2020 are selected for threshold regression.Finally,according to different ownership,this paper explores whether the nonlinear effect exists and its reasons in state-owned enterprises and non-state-owned enterprises.The results of theoretical analysis show that under the guidance of preventive motivation,the financial level of real enterprises is in a relatively reasonable range,while under the guidance of arbitrage motivation,the financial level tends to be unreasonable,and even leads to its gradual deviation from its main business.Therefore,the financialization level of an enterprise must be moderate,and this moderate level of financialization comes from the financialization motivation dominated by preventive motivation.On the one hand,the moderate financialization of real enterprises has reservoir effect,financing constraint mitigation effect and investment buffer effect.On the other hand,the excessive financialization of real enterprises inhibits the total factor productivity of enterprises due to the "crowding out effect" of replacement resources on real investment and the risk effect of financial asset investment.Then,the nonlinear relationship between them can be demonstrated from whether the inverted U-shaped relationship is established.The results of threshold regression show that: first,the nonlinear relationship presents an inverted U-shape.Second,moderate financialization helps to improve total factor productivity,while excessive financialization inhibits total factor productivity.The dividing point is that fixed asset investment accounts for 13% of total assets.Third,there are significant differences between state-owned and non-state-owned enterprises in the nonlinear impact of entity enterprise financialization on total factor productivity.It has a significant inverted U-shape in non-state-owned enterprises,but not in state-owned enterprises.This is because non-state-owned enterprises have strong financing constraints,while state-owned enterprises are easier to obtain credit supplement and make up for the "crowding out effect" of financialization.Finally,this paper puts forward some enlightenment from the starting point of moderate financialization.First,real enterprises should pay attention to the nonlinear impact of financialization on total factor productivity,constantly adjust the appropriateness of financialization and optimize the efficiency of enterprise resource allocation.Second,governments at all levels and relevant departments should guide enterprises to carry out appropriate financialization according to their own development needs.Third,non-state-owned enterprises should adhere to an appropriate level of financialization,coordinate the relationship between financial asset allocation and physical investment,and state-owned enterprises should establish a long-term performance mechanism to promote total factor productivity.