Research On The Impact Of Financial Asset Allocation On Operational Risk Of Manufacturing Enterprises

In recent years,with the deepening of economic globalization,China’s economy has entered a key stage of structural transformation.Traditional real industries have overcapacity,declining profits and low return on investment.Virtual industries such as finance and real estate are developing rapidly,and the return on investment is far higher than that of real industries.Entity enterprises dominated by manufacturing industry began to deviate from their main business,enter the financial industry and real estate industry,and allocate financial assets.This phenomenon is enterprise financialization.The financialization of real enterprises is the microcosmic manifestation of "disenchantment from reality to emptiness" of economy.Because the financial industry and the real estate industry will bring higher risks at the same time,therefore,the lack of the real economy relies on excessive financing.One of the main reasons for the global financial crisis in 2008 is the excessive financialization of the real economy.Manufacturing industry is an important part of the real economy.It is a capital intensive enterprise with large capital demand and strong financing constraints,which is easy to fall into business difficulties.Therefore,studying how the allocation of financial assets of manufacturing enterprises will affect their operational risks can not only provide relevant theoretical basis for non-financial enterprises to allocate financial assets,but also help to provide constructive suggestions for the rapid development of the national economy.So far,the academic circle has not reached a unified conclusion on the mechanism of the impact of financial asset allocation on operational risk of manufacturing enterprises.On the one hand,the financial asset allocation of manufacturing enterprises motivated by "savings" will broaden the financing channels of enterprises,strengthen the financing ability of enterprises,help to effectively alleviate the financing constraints and reduce the business risks of enterprises.On the other hand,the allocation of financial assets by manufacturing enterprises motivated by "arbitrage" will crowd out the main business investment,reduce the liquidity of enterprise operating funds,aggravate financing constraints,and increase the operation risk of enterprises.How will the allocation of financial assets of manufacturing enterprises affect the operational risk? As the limitation of Chinese manufacturing enterprises’ external financing,will financing constraints play an intermediary role in the mechanism of enterprise financial asset allocation affecting operational risk? Therefore,this paper uses a total of20149 observation values of 2569 A-share listed manufacturing enterprises in Shanghai and Shenzhen from 2007 to 2020 as the research sample to explore the impact of financial asset allocation of manufacturing enterprises on their business risks through empirical analysis,and further investigate the intermediary effect of financing constraints.The inspection results show that:(1)Generally speaking,the financial asset allocation of manufacturing enterprises will significantly increase the business risk of enterprises;(2)Mechanism analysis shows that financing constraints play an intermediary role in the impact of financial asset allocation on business risk of manufacturing enterprises,that is,"the allocation of financial assets by manufacturing enterprises-the increase of financing constraints-the increase of enterprise operation risk";(3)Compared with non-state-owned enterprises,the financial asset allocation of state-owned manufacturing enterprises has a more significant impact on their business risks;The financial asset allocation of manufacturing enterprises with low governance level will significantly increase the business risk,while the financial asset allocation of manufacturing enterprises with high governance level has no significant deterioration effect on the business risk;The economic development level of the region where the manufacturing industry is located will also affect the relationship between enterprise financial asset allocation and enterprise operation risk to a certain extent.Compared with the eastern region,the financial asset allocation of manufacturing enterprises in the central region has a more significant positive impact on their operational risk.Finally,this paper puts forward some suggestions from three aspects:enterprise financial asset allocation,financing constraints and enterprise operation risk.In order to provide more research ideas and solutions to the regulatory authorities and provide new reference evidence for manufacturing enterprises to allocate financial assets.