How Does Enterprise Financialization Affect Enterprise Export?

The report of the 20 th CPC National Congress pointed out that the real economy is the focus of development,and the manufacturing industry is an important part of the real economy.Financialization is a double-edged sword.Over-financization may cause capital to idle in the financial market,and enterprises to deviate from the main business,which will hinder long-term development;Moderate enterprise financialization can provide financial support for enterprises.Export is one of the three carriages that drive economic growth.Affected by the epidemic,international enterprises are facing increasing risks in export.China has the largest manufacturing industry in the world,and the export scale of manufacturing enterprises has been expanding in recent years.It can be great significance to the country and enterprises studying the impact of enterprise financialization on the export of Chinese manufacturing enterprises with the growth of enterprise financialization.This study can provide ideas for the development of China’s real economy and provide a way for Chinese manufacturing enterprises to survive in the context of financialization.Therefore,this paper links enterprise financialization and enterprise export to examine the impact of corporate finance on corporate exporting,using Chinese manufacturing firms as the subject of study.This paper analyzes the current situation of China’s enterprise financialization and enterprise export in recent years by collecting relevant data.This article analyzes the current situation of China’s enterprise financialization and enterprise exports in recent years by collating relevant data.Firstly,from the perspective of enterprise financialization,it analyzes the trend of asset financialization of physical enterprises,the main types of activities,and the purpose and foundation of manufacturing enterprise financialization.Secondly,Comparing with the large enterprises,the relatively small enterprises are suffering more negative impact on export when they carry out financial activities.Based on the definition and essence of enterprise financialization and enterprise export,this paper studies the internal relationship between enterprise financialization and enterprise export.On the one hand,corporate finance has a positive effect on corporate exports.Including direct effect: reservoir effect,and indirect effect of improving financing ability,capital operation ability and enterprise R&D ability.On the other hand,corporate finance has a negative effect on corporate exports.It includes direct effects: "crowding out" effect,and indirect effects that make physical enterprises deviate from the main business,increase the excess rate of return,increase financial risks,and then reduce total factor productivity,squeeze out R&D investment,and increase export costs.Based on the micro-data of China’s manufacturing industry,this paper conducts an empirical study on enterprise financialization and enterprise export.This paper processes and regresses the data,and empirically tests the impact of China’s manufacturing enterprises’ financialization on enterprises’ exports.The research results show that the enterprise finance will significantly reduce the export scale of enterprises.When studying the differential impact of enterprise financialization in different enterprises,we found that: first,the negative impact of enterprise financialization on enterprise exports in state-owned enterprises is smaller than that in non-state-owned enterprises from the perspective of enterprises with different ownership.Second,in terms of companies of different sizes,the relatively small enterprises will suffer more negative impact on their exports when they carry out financial activities than the relatively large enterprises.Third,when carrying out the financialization,the enterprises with high power concentration have a more significant negative impact on the export of enterprises from the perspective of enterprises with different power concentration,.Fourth,from the perspective of enterprises with different profitability,corporate financialization has a more significant negative impact on exports of enterprises with weaker profitability.Based on the above conclusions,this paper puts forward suggestions to the government and enterprises on how to balance enterprise financialization and enterprise export.The government should strengthen financial supervision and create a good investment and financing environment for enterprises.Manufacturing enterprises should also allocate funds scientifically and reasonably to play the role of "reservoir" of financialization.