Research On The Impact Of Enterprise Financialization On Main Business Performance

In recent years,the degree of financialization of China’s enterprises has been deepening,"from reality to emptiness" has become one of the structural problems of concern in China.It has not only changed the macro operating environment of enterprises,but also deeply affected the asset allocation and management decision-making of enterprises.The specific performance is as follows: non-financial enterprises put more funds into the financial field,ignoring the investment in fixed capital,and the innovation ability is gradually weakening.Financial investment has increasingly become an important source for enterprises to obtain profits.This phenomenon leads to the macro-economy "from real to virtual",and the economic center of gravity has shifted;At the micro level,non-financial enterprises take care of one thing and lose the other,and their main business is "hollow".In March 2019,at the second session of the 13 th National People’s Congress,Li Keqiang raised issues related to avoiding enterprises from real to virtual and capital idling,which shows the state’s attention to this issue.Aiming at the phenomenon of the gradual virtualization of the real economy,this dissertation studies the impact of enterprise financialization on the performance of the main business,which has a certain reference significance for enterprises to formulate reasonable asset allocation strategies,and also provides relevant theoretical basis for the government to formulate financial policies to a certain extent.This dissertation first analyzes the impact of enterprise financialization on the performance of the main business from the theoretical level,and then takes the listed companies in the A-share non-financial industry from 2008 to 2018 as the research object,using the panel regression fixed effect model to further test the relationship between the two through empirical analysis.Firstly,this dissertation analyzes the direct total effect of enterprise financialization on the main business performance from the full sample level.Secondly,it introduces four regulatory variables: financing constraints,commercial credit,arbitrage motivation and property right attribute to test the impact of enterprise financialization on the performance of the main business.Thirdly,taking innovation ability,fixed capital investment,debt risk and debt financing cost as intermediary variables,this dissertation deeply discusses the transmission mechanism and path of enterprise financialization affecting the main business performance.Finally,in order to prevent the deviation of empirical results,this dissertation further makes a robustness test.It is found that:(1)enterprise financialization hinders the development of main business performance.In other words,the "crowding out" effect of enterprise financialization on main business performance is greater than the "reservoir" effect.Although enterprise financialization has a "reservoir" effect in theory,that is,enterprises maintain and increase the value of assets through financial investment,so as to feed the development of main business.However,because the financial industry has a rate of return far exceeding that of the real industry,the income obtained by the allocation of financial assets by enterprises,instead of investing in physical capital for the development of the main business,continues to be allocated to pan financial industries such as finance,insurance and real estate,forming a speculative cycle of "financial investment-income acquisition-financial investment",which eventually leads to the gradual deviation of enterprise development from the main business.Therefore,in the situation of structural imbalance between finance and real economy,the "reservoir" effect of enterprise financialization is weakened,the "crowding out" effect plays a leading role,and the overall effect of enterprise financialization on the development of main business performance is negative.(2)The impact of enterprise financialization on the performance of main business is heterogeneous.When enterprises face greater financing constraints,worse commercial credit,stronger arbitrage motivation and are state-owned enterprises,the inhibitory effect of financialization on the performance of the main business will be more significant.(3)On the transmission path of the impact of enterprise financialization on the main business performance,the study found that financialization will inhibit the innovation ability of enterprises,squeeze out fixed capital investment,increase the debt risk of enterprises and increase the debt financing cost,which will hinder the development of the main business performance of enterprises,indicating that the innovation ability,fixed capital investment,debt risk and debt financing cost are important mechanisms for the impact of enterprise financialization on the main business performance.In view of the above research conclusions,this dissertation also puts forward corresponding suggestions:for example,the government should strengthen financial supervision,curb financial speculation and do a good job in top-level design in order to reverse the "de reality to virtual" of the real economy;Enterprises should standardize financial investment behavior and strengthen the construction of internal innovation team.