Analysis On The Motivation And Consequence Of Enterprise Financialization

With the constant improvement of the financial markets,financial assets rise in yields and entity investment yields down,more and more companies involved in financial investments in different degrees,to form the entity enterprise financialization trend,but is different from foreign enterprises,the purpose of the financialization financialization of Chinese enterprises are mostly for speculative motive,may lead to various negative effects.Taking Huamao As a case,this paper studies the specific impact of corporate financialization on it,and provides reference for enterprises to deepen the degree of financialization and guide enterprises to view financialization correctly.This paper sorted out the financialization process of Huamao Shares into three stages:early financialization stage(2001-2006),deepening financialization stage(2007-2015),and late financialization stage(2016-2021).In different stages of financialization,the degree of financialization and the trend of change are different.First of all,after verifying that the degree of financialization does have an impact on the performance of Huamao’s main business,this paper adopts the method of vertical analysis and horizontal analysis compared with the industry to combine the traditional financial indicators and EVA indicators.The research finds that Under the influence of financialization,enterprises will have different economic consequences due to different operating conditions,timing and time span of financialization.Enterprises should moderately financialize when the profit rate of their main business is relatively high and hold more long-term financial asset investment.On the contrary,the main development situation is bad,you should reduce the financialization degree or reduce its long-term investment,financial assets into short-term investment and is helpful for in a timely manner to industrial investment fund,avoid extrusion industrial investment,business really improve their business ability is not only the best way to inhibit the negative effect of financialization,And can maximize the use of financial positive effects back to feed the development of the main industry.Secondly,it studies the influence of financialization on the financial performance of Huamao Stock,and uses z-Score model to study the influence of financialization on the financial risk of Huamao Stock.In the early stage of financialization,the short-term debt is relatively high,and the problem of short-term debt and long-term investment is prominent in the deepening period,leading to the continuous upward financial risk of enterprises.With the reduction of long-term equity investment and the recovery of main business operation in the late stage of financialization,the financial risk begins to decline.Finally,based on the influence of financialization on the financial performance of Huamao Stock,the financial motivation of Huamao Stock includes internal motivation and external motivation.The external motivation is caused by changes in the global trends and industry financialization,internal motivation,vary in different stages of financialization of the early reservoir for the purpose of motivation,to ease the financing constraints financialization deepening period to seek for profit growth point,the pursuit of high returns for motivation,in addition to this,and implement the strategy of diversification and earnings management motivation.On this basis,four suggestions are put forward: enterprises should overcome the short-sighted profit-seeking behavior,focus on the development of main business,moderate financialization,pay attention to financial risks,optimize the structure of holding financial assets,and the government should actively support the manufacturing industry to alleviate financing problems.