Research On The Impact Of Entity Financialization On Stock Liquidity

At present,the profitability of real enterprises in China has been declining,while the capital profitability of the financial sector has been higher than that of real enterprises.Against the backdrop of declining returns on physical investment,enterprises generally choose to invest money in the financial and real estate sectors in order to chase more profits,and the trend of real economy "from real to virtual" is deepening.The allocation of financial assets by real enterprises will have an impact on the sustainable development of enterprises,and then affect investors’ judgment on the investment value of enterprises,and influence the stock liquidity of enterprises.As the lifeline of the capital market,stock liquidity is not only the key factor to ensure the smooth operation of the financial market,but also plays an important role in maintaining the stability of the stock price and improving the internal governance of enterprises.Therefore,this paper starts from the two effects of corporate financialization to study the impact of corporate financialization on stock liquidity and makes a systematic analysis.This paper uses the data of listed A-share entities from 2008 to 2020,studies the impact of corporate financialization on stock liquidity,and obtains the appropriate level of financialization.On this basis,from the perspective of enterprise value,the paper explores the influence path of entity enterprise financialization on stock liquidity.In addition,it also verifies the moderating effect of financing constraints on entity enterprise financialization and stock liquidity.Finally,heterogeneity analysis is conducted based on firm size,property nature and financial asset maturity differences.It is found that there is a clear inverted U-shaped relationship between corporate financialization and stock liquidity.Moderate financialization has a positive impact on stock liquidity,while excessive financialization has a negative impact on stock liquidity.Corporate financialization has an impact on stock liquidity through corporate value.There is an inverted U-shaped relationship between corporate financialization and corporate value,and corporate value has a positive impact on stock liquidity.At the same time,financing constraints have a negative moderating effect on the inverted U-shaped relationship between corporate financialization and stock liquidity.Further research shows that the inverted U-shaped relationship between corporate financialization and stock liquidity is more significant in large-scale,non-state-owned entities and those that allocate long-term financial assets.Finally,according to the research conclusion of this paper,relevant policy suggestions are put forward from the perspectives of government,enterprises,financial institutions and investors.The innovations of this paper are as follows: First,considering the non-linear effect of corporate financialization,the inverted U-shaped relationship between corporate financialization and stock liquidity is verified.Second,the intermediary variable of enterprise value is introduced to explore the influence mechanism of entity enterprise financialization on stock liquidity and the regulating effect of financing constraints on the relationship between the two.