An Empirical Research On The Impact Of Financialization Of Entity Enterprises On Stock Price Crash Risk

Under the background of the country’s efforts to promote the structural reform and consumption upgrading,China’s economy has entered a new normal period.Compared with other industries,the financial industry has obvious advantages,with high rate of return on assets and rapid expansion of asset scale.Motivated by the pursuit of bright financial performance,the management of the company chooses to get involved in the financial industry with higher investment returns,so the industrial capital is transformed into financial capital.However,the financial investment activity decision made by entity listed companies is a double-edged sword.Timely financial decisions can effectively give play to the operational efficiency of capital,make it flow and integrate in entity business and financial business,and promote enterprise diversification;Once excessive financialization degree,however,the imbalance between capital in the real business and financial business,financial business occupies a high proportion of the capital,relative,entity enterprise main business investment funds nervous,hollowing out,even a strong blow to the enterprise investment entity project confidence and enthusiasm,enterprise daily business performance is not only so,It may also lead to the mania of investment and financial business,and even the market value of listed companies deviates from the actual reasonable range,inducing capital bubble and affecting the stability of capital market.Accordingly,financial activity and enterprise performance,market economy situation are inseparable.How to carry out China’s financial work in the new era has become a hot point of well-concerning in the field of practice and theory.As a barometer of the economic trend,will the financialization of real enterprises have some impact on the risk of future stock price nose-diving? Is the financialization of entity firms to perfect the financial results of enterprises and availably contain the risk of stock price nosediving,or does the financialization of real enterprises reduce the efficiency of capital operation and driving the risk of stock price nose-diving? This paper further examines whether investor sentiment will promote the financial investment activities of the management,leading to increasing the risk of stock price nose-diving in the future?This paper picks 2010 to 2020 as the time window,and uses multiple linear regression as the moderating effect in Stata software to explore the correlation between the financialization of entity enterprises and the risk of stock price nosediving combined with theory and reality.The results show that the risk of stock price nose-diving of real enterprises is alleviated by the rising of financial degree of enterprises,and the effect is climbing with the rising of investor sentiment.The above results indicate that the financial investment transactions of real enterprises at the present stage can promote the steady development of enterprises and contain the risk of stock price collapse.Meanwhile,it is necessary to pay attention to the phenomenon of "reversal" of positive relationship into negative relationship when the reasonable limit of financialization degree is breached.Shanghai and shenzhen a-share listed companies in China for empirical research,financialization entity enterprises is discussed in this paper and the relationship between stock market prices tumbled and investor sentiment in the regulation between the two,for all kinds of which aims at enhancing the financialization of the company’s operating performance and return on assets company reference,help the company in the financialization decisions and dealing with the investor sentiment is more rational and agile,Take stock price swings in stride and defend shareholders.At the same time,it can reduce the risk of stock price nose-diving of non-financial listed companies,contribute guiding value to stabilize the healthy development of the stock market,analyze the relationship between asset allocation securitization and stock price nose-diving risk from a new perspective,and consider the effect mechanism of investor sentiment on the relationship between financialization of real enterprises and stock price nose-diving risk.Finally,according to the research of this paper,the theoretical transformation of the correlation between the financialization of real enterprises and the risk of stock price nose-diving is enriched.