The Influence Of Urban Financial Agglomeration On The Financialization Of Enterprises

The relationship between financial development and real economy has always been the focus of academic attention.In recent years,China’s financial system has developed rapidly,and financial resources have gathered in different degrees in major cities.At the same time,the phenomenon of enterprise financialization is also increasing.In this context,this paper studies the influence of macro-urban financial agglomeration on micro-enterprise financialization behavior,analyzes its specific mechanism,discusses the possible motives behind enterprises,and discusses the constraints of different factors,in an attempt to deepen the understanding of enterprise financialization behavior from the perspective of changes in the external financial environment.Firstly,this paper reviewes the latest literatures in the field of financial agglomeration and enterprise financialization,and combed the related theory,to grasp the latest progress in the study of financial agglomeration and enterprise financialization.It is found that in the existing literature,there is still a lack of relevant studies on the influence of macro-financial environment on enterprise financialization,especially on the influence of financial environment at the city level on on enterprise financialization.Therefore,this paper studies from the perspective of urban financial agglomeration.Based on the analysis of financial agglomeration of agglomeration effect and diffusion effect,competition effect,as well as enterprise financialization of preventive savings motives,profit-seeking motives,the mechanisms of financing constraint,risk,return rate and commercial credit are summarized and sorted out,and the research hypotheses of four channels about the financial agglomeration affect enterprise financialization are put forward.The empirical research focuses on the impact of financial agglomeration on the enterprise financialization.Based on accounting standards,this paper selects the data of non-financial enterprises listed on The Shanghai and Shenzhen A-stock exchanges from 2007 to 2017,covering 237prefecture-level cities.The fixed effect model is used for empirical test,and the channel test is conducted from financing constraints,risk of financial asset investment,relative return rate of financial asset investment and commercial credit,a series of heterogeneity analysis and robustness tests were carried out.The results show that financial agglomeration can significantly promote the enterprise financialization.Financial agglomeration can influence the enterprise financialization through three channels of financing constraints,investment risks of financial assets and commercial credit,but the channel of relative return on financial asset investment has not passed the significance test.Further,through the heterogeneity analysis found that the positive influence of financial agglomeration on enterprise financialization is mainly reflected in non-state-owned enterprises,the enterprises of that main business revenue growth rate lower than the industry average,manufacturing industry,and the the enterprise in eastern region.Financial agglomeration mainly affects the financialization of non-state-owned enterprises through risk channels,that is,non-state-owned enterprises financialize more for the purpose of avoiding risks.Finally,centering on the conclusions of this paper,some policy suggestions were put forward from the perspectives of the government,financial regulatory authorities and enterprises.The government policies can guide the rational allocation of financial resources and improve the economic system.The financial regulatory authorities regulate the financialization of enterprises in a differentiated manner,and guide bank targeted loan policies to restrain the financialization of profit-seeking enterprises and carry out long-term financial supervision.The enterprises formulate internal management mechanism and improve the system of the financial analysis and consulting service.