Study On The Motivation And Effect Of Financialization Of Non-Financial Enterprises

As an important part of Chinese real economy,the development of manufacturing industry has always been an important object of national attention.With the transformation of Chinese economy and the change of global market environment in recent years,the labor cost of manufacturing industry has increased,overcapacity and profit margin have begun to decline.Improving innovation ability has become a common problem faced by China’s manufacturing industry.Real enterprises,especially manufacturing industry,are facing great pressure of transformation.With the rapid development of the national economy and the improvement of the market economy and financial system in recent years,the focus of many real enterprises began to shift towards financial assets.After the outbreak of the financial crisis,under the background of the continuous downturn of the real economy and the continuous expansion of the financial industry,Chinese economy showed a trend of "disenchantment from real to virtual",and most manufacturing enterprises invested a large part of their funds in financial assets,The purpose of this measure of the company is mainly to obtain high financial returns through the allocation of financial assets,alleviate the internal financing pressure of the enterprise,stimulate the main business through the income of financial assets,and resist internal and external risks through the allocation of financial assets.Based on these purposes,a large number of listed companies began to allocate financial assets and improve their enterprise value.However,any operation has risks.The allocation of financial assets can indeed have a positive impact on the company,such as obtaining high financial returns mentioned above,but the large-scale allocation of financial assets by entity enterprises will also have a negative impact on the company.On the one hand,the research shows that the reasonable allocation of financial assets does have a proven impact on listed companies,such as pulling the main business of the enterprise itself,giving play to the role of "reservoir" to resist risks,obtaining high financial returns and alleviating the financing constraints of the enterprise.A good allocation of financial assets can help the enterprise improve the overall asset liquidity of the enterprise.On the other hand,the research shows that the financial asset allocation of entity enterprises may have a negative impact on the enterprise,such as affecting the main business operation of the enterprise,and a large number of financial asset allocation will occupy the investment of entity operating assets of the company and affect the investment of financial assets of the company.On the other hand,some scholars suggest that the financial asset allocation of enterprises may have a certain negative impact on the entity operation,such as occupying the investment of operating assets Occupy the company’s development investment,etc.Due to the different views of these two aspects,this paper selects the representative SEPTWOLVES listed companies that started earlier in the allocation of financial assets,analyzes the motivation of SEPTWOLVES financial asset allocation and what impact it will bring to the enterprise after allocation,which can help private enterprises understand the motivation of financial asset allocation and provide help to the production and operation of enterprises.