| As China’s economy enters the new normal,the development of entity enterprises encounters the pressure of economic transformation,and more and more industrial capital is transferred to the financial sector."Profit reservoir" The Ministry of Finance made a major revision to the financial instrument standards in 2017 and formally implemented it in 2019,which is committed to regulating the financial asset investment behavior and profit and loss presentation of listed companies.So,can accounting supervision play a governance role in the issue of "the financialization of entity enterprise"?Does information environment affect the effectiveness of the implementation of accounting standards?How does the institutional optimization of the standard change affect the financial asset allocation behavior of enterprises?This paper selects the annual data of China’s A-share non-financial listed companies from 2016 to 2021 as a sample to test the governance effectiveness of the new financial instrument standards on the financialization of entity enterprise,and explores the impact of environmental heterogeneity on the implementation of accounting standards,as well as the mechanism of the new financial instrument standards inhibiting the melting of entity funds.This article draws the following conclusions:(1)The implementation of new financial instrument standards has inhibited the financialization of entity enterprise.Strengthening accounting supervision helps to address the macroeconomic issue of the financialization of entity enterprise.The study also found that the larger the scale of non-trading equity instruments held by enterprises,the stronger the inhibitory effect of the implementation of the new financial instrument standards on the financialization of entity enterprise n.Further analysis shows that after the implementation of the new financial instrument standards,the allocation structure of financial assets has changed,the proportion of equity instruments held by entity enterprises has decreased,and the proportion of debt instruments has increased.(2)The information environment has enhanced the inhibitory effect of new financial instrument standards on the financialization of entity enterprise.The CEO’s financial background and analyst tracking play a regulatory role,enhancing the effectiveness of the implementation of the new financial instrument standards.It is revealed that high-quality accounting standards provide an institutional environment,and a highquality information environment is an important factor in ensuring compliance of listed companies with accounting standards.(3)The new financial instrument standards inhibit the financial investment behavior of entity enterprises through two mechanisms:inhibiting strategic financial behavior and improving accounting information transparency.On the one hand,the new financial instrument standards have a regulatory role in financial behavior.By prohibiting the release of "profit pools,"they inhibit the strategic classification of financial assets for the purpose of earnings management,thereby inhibiting the financialization of entity enterprise.On the other hand,the implementation of the new financial instrument standards has improved the transparency of accounting information,reducing "selective transparency" by optimizing disclosure items and limiting profit and loss recognition,prompting managers to optimize asset allocation,thereby inhibiting the financialization of entity enterprise.The academic contribution of this paper is reflected in the innovative proposal and confirmation of the policy attribute of financial instrument standards,and the promotion of standards research from the information perspective to the regulatory perspective.Based on the fusion of accounting and finance,the research on the financialization of entity enterprise has been expanded,starting from the micro perspective of internal financial strategy and reporting behavior of enterprises,and going deep into the measurement model of financial assets to explain the financialization behavior.Moreover,incorporating the information environment into the policy analysis framework deepens the understanding of the role of the information environment in transforming the institutional advantages of the new financial instrument standards into governance effectiveness,and is of great value to understand the role of accounting supervision in economic supervision. |
