Research On The Impact Of Financialization Of Non-financial Enterprises On TFP

In the process of building a modern socialist power,the primary task is high-quality development.It is necessary to improve total factor productivity,enhance the resilience of the industrial chain and supply chain,promote urban-rural integration and coordinate regional development,and promote economic development to achieve qualitative and quantitative growth.At present,the economic growth is slowing down and the actual factor cost is increasing.Only by improving the total factor productivity can we cope with the rising labor cost,stabilize the marginal investment,improve the company’s profitability,reduce the pressure on resources and environment,and mitigate the risks accumulated in the past.In recent years,China’s real economy has continued to be weak,and the phenomenon of "falling off the real to the virtual" of real enterprises is serious.On the one hand,it is reflected in the continuous expansion of the capital scale of the financial industry,on the other hand,the proportion of financial assets allocation of some non-financial enterprises continues to increase,and the willingness of real investment continues to decline.What is the impact direction and extent of this on the total factor productivity of enterprises.The research object of this article is non-financial listed companies,attempting to explore the relationship between their financialization behavior and total factor productivity.Firstly,this article reviews the research of domestic and foreign scholars,briefly introducing the definition,causes,consequences,total factor productivity,and its measurement of non-financial enterprise financialization through literature review.Next,this article differentiates and analyzes relevant concepts that are easily confused with the financialization of non-financial enterprises,and introduces relevant theories such as the "reservoir" theory and the investment substitution theory that affect total factor productivity through enterprise financialization.It is believed that the financialization behavior of non-financial enterprises,on the one hand,is based on the "reservoir effect",which has a positive impact on total factor productivity,and on the other hand,because of "speculative motivation",it inhibits total factor productivity.On the basis of theoretical research,through the description of the current situation and background of the financialization of non-financial enterprises,it is found that under the influence of macroeconomic downward pressure,the financial and real estate industries have developed rapidly,and the high returns of the financial market have led China’s non-financial enterprises to invest more and more funds in the financial industry,with a gradual deepening of the degree of financialization.Then,in the empirical research section,this article selects the data period from 2009 to 2021,and the sample is the annual financial data of non-financial listed companies in China’s Shanghai and Shenzhen A-shares.Using non-financial enterprise financialization(fin)as the explanatory variable,enterprise total factor productivity(tfp)as the explanatory variable,and enterprise size,capital structure,capital intensity,growth ability,equity concentration,and profitability as the control variables,establishing a fixed effect model.Based on the benchmark regression analysis,it is concluded that the current motivation for non-financial enterprises’ financialization is mainly based on arbitrage,which restricts the total factor productivity of enterprises.It is influenced by both "savings motivation" and "arbitrage motivation",and there is an "inverted U relationship" between financialization and total factor productivity of enterprises.Based on benchmark regression,a group regression study found that compared to state-owned enterprises,non-state owned enterprises are difficult to obtain stable cash flow for a long time.The main purpose of financialization is to obtain liquidity,so it has less constraints on total factor productivity;Enterprises in the central and western regions are constrained by geographical conditions and transportation,resulting in higher capital costs.The low return on investment in the real economy contrasts with the high profitability of finance,which promotes speculative profits through financialization,and thus has a greater inhibitory effect on total factor productivity;The financing of small and medium-sized enterprises is mostly driven by savings,so the inhibitory effect is less than that of large enterprises.Based on the above research results,the following policy recommendations are proposed: For the government,on the one hand,it is necessary to build a good financial ecological environment,improve market systems,and strengthen the supervision of non-financial enterprises’ financial behavior and institutional improvement,to control their financial degree within an appropriate range,while also further promoting the coordinated and characteristic development of the eastern,central,and western regions;From the perspective of enterprises,enterprises should optimize their resource allocation structure,give play to the reservoir effect,further improve corporate governance,focus on long-term benefits,attach importance to technological innovation and industrial upgrading,and promote the improvement of total factor productivity.