The Impact Of Corporate Financialization On Operating Performance: Promotion Or Inhibition

Enterprise financialization is an important manifestation of economic "decoupling from real to virtual" at the microcosmic level.In recent years,the problem of enterprise financialization in our country has become increasingly prominent,especially the financialization of real enterprises has attracted wide attention from the theoretical and practical circles.As an important foundation of the real economy,manufacturing industry provides essential material conditions for economic and social development.However,the reality shows that there is a widespread problem of financialization in Chinese manufacturing enterprises.Will this lead to the "crowding out" of the real economy? The issue has raised broader concerns about the future of manufacturing companies and the real economy.Based on the reality that the financial level of Chinese manufacturing enterprises is increasing,and the background that enterprises’ "real to virtual" may have great influence on entity investment and business performance,this paper studies the relationship between enterprise financialization and business performance,and discusses the role of entity investment in the relationship between the two.This paper mainly studies the relationship between financialization,entity investment and business performance from both theoretical and empirical aspects.In the theoretical part,this paper first reviews the literature on enterprise financialization,entity investment and business performance,then combines the theoretical basis and development status of enterprise financialization,entity investment and business performance,the influence mechanism of the three factors is analyzed and the research hypothesis of this paper is put forward.On the basis of the theoretical analysis above,in the empirical part,this paper selects data samples related to financialization and business performance of Chinese A-share manufacturing listed companies from 2010 to 2020 to study the influence of corporate financialization on business performance,and conducts relevant mechanism tests to investigate the intermediary effect of physical investment between the two.In addition,this paper also carries on the correlation heterogeneity analysis,and carries on the robustness test to ensure that the empirical results are scientific and robust.In the last chapter,the conclusion of this study is summarized,and the corresponding policy recommendations are put forward.After a series of empirical tests,the results show that:(1)From the perspective of financial asset allocation,corporate financialization has a significant inhibitory effect on business performance;(2)Corporate financialization will have a negative impact on the entity investment,which is an intermediary factor between corporate financialization and business performance.Corporate financialization inhibits the improvement of business performance by "crowding out" the entity investment;(3)Holding financial assets of different maturities will have a inhibitory effect on business performance,and long-term financial assets will have a greater inhibitory effect on business performance;(4)From the perspective of regional differences,the financialization of enterprises in the eastern region can significantly inhibit business performance,while the inhibitory effect is not significant in the central and western regions;(5)Under different property rights,the financialization of enterprises will have adverse effects on business performance,and the financialization of state-owned enterprises has a greater inhibitory effect on business performance.Based on the above empirical research results,this paper proposes the following policy recommendations:(1)Strengthen financial supervision and screen the speculative behavior of excessive financialization;(2)Improve the basic system of the capital market and solve the financing problems faced by enterprises;(3)Improve the operating environment of entity enterprises and guide enterprises to return to their main business;(4)Improve the modern corporate governance system and reduce agency conflicts.