Research On The Motivation And Consequence Of The Financialization Of Haixin Co.,Ltd.

The rapid development of the physical manufacturing industry has strongly promoted the take-off of China’s economy.However,with the new generation of industrial revolution sweeping the world,drastic changes in the market environment,insufficient development of core technologies and many other factors,my country’s manufacturing industry is facing a more severe growth dilemma.At the same time,the financial and real estate industries benefited from the macro environment and related policies and entered the fast lane of development.The significant difference between the two has prompted more and more real enterprises to get involved in the financial and real estate fields in various ways to seek“quick money”,and the problem of real enterprises “departing from the real to the virtual”has threatened the healthy development of the economy and society.Since 2015,the Central Economic Work Conference has continuously mentioned that it is necessary to curb the trend of large-scale capital flow into the virtual economy,prevent the disorderly expansion of capital,and promote the formation of a virtuous circle between finance and the real economy,finance and real estate,and the financial system,and even more so in2021.It is clearly pointed out that “traffic lights” should be set for capital to prevent its savage growth.In this context,it is of great practical significance to deeply explore the motivation and consequences of corporate financialization from a micro perspective.In view of this,this paper selects Haixin as the research object,and traces Haixin’s investment from the world’s largest plush product production conglomerate,gradually dispersing operating resources,and finally forming a medical and health industry-based,real estate and financial investment.In addition,the process of the “one main and two wings” strategic pattern will be supplemented,and the reasons and consequences of Haixi’s financialization will be deeply explored.This paper firstly sorts out the strategic transformation process of Haixin Co.,Ltd.,and forms a comprehensive understanding of corporate financialization.Qualitative analysis using the theory of outflow effect and reservoir effect,quantitative analysis using financial index analysis method,comprehensive and detailed research on the reasons and consequences of corporate financialization,and finally from the perspective of corporate internal governance,national policy supervision and investor interests Corresponding implications are drawn from the perspective of protection.The research found that:(1)By measuring the financial asset allocation ratio and financial income ratio,Haixin’s financialization can be divided into an entry stage and an in-depth stage,and has the characteristics of early deployment,decentralized investment and strategic adaptation;(2)Both internal and external factors drive Haixin’s financialization behavior.Among them,earning excess investment profits and easing financing constraints are the main external factors,while beautifying the company’s operating performance,making up for cash flow shortages and preventing operational risks are the main internal factors;(3)Corporate financialization has both positive and negative effects,and the effects are dialectical and comprehensive.Although the impact of Haixin’s financialization has a positive side on the surface,over-financialization has a more profound negative side.On the surface,the financialization of the company exerts a reservoir effect,which plays a positive role in smoothing the company’s profits and improving its solvency at the level of financial statements.But at a deeper level,over-financialization has produced a crowding-out effect,resulting in a decline in the quality of corporate earnings,a reduction in industrial investment,and a serious blow to the level of innovation and growth.The research inspiration of this paper is: at the level of internal corporate governance,manufacturing enterprises should dialectically view the positive effects and negative consequences of corporate financialization,commit to long-term development and value creation,keep the original intention of the industry,pay attention to the development of the main business,and appropriately carry out financialization investment,and prevent financial risks;at the level of national policy supervision,all departments should pay attention to the operational difficulties faced by the manufacturing industry,work together to improve the financial ecology,guide funds to“get out of the virtual and into the real”,and implement the policies and implementations that guide the financialization of real enterprises;At the level of investor interest protection,the majority of investors should fully understand the company’s business,profit preferences and income quality,etc.,and make rational investments.