Study On The Homogeneity Effect Of Corporate Financialization Under Economic Policy Uncertainty

In recent years,under the rapid development of Chinese economy,the number and scale of financial institutions have increased rapidly,and the contribution rate of financial industry and real estate industry to economic growth is constantly climbing.Correspondingly,the development speed of the real economy begins to slow down.With the widening gap between the return rate of financial market and the return rate of real investment,driven by the motivation of seeking profits and avoiding risks,more and more real enterprises will flow funds from the real industry into the virtual economy,resulting in the real sector "real to virtual" phenomenon.In fact,as a part of the market economy,enterprises play a very important role in the development and operation of the country,and enterprises will inevitably be affected by external factors in their daily business activities,especially the financial assets themselves have certain risks.Therefore,when making financial asset investment decisions,enterprises will choose to refer to public information of some industries in order to reduce the uncertainty.That is,there is interaction between enterprises in the same industry.In recent years,the international political and economic changes have been quite drastic.In order to cope with the complex and changeable international environment and the internal economic structure transformation,the Chinese government has frequently adjusted its policies.However,the frequent adjustment of policies is accompanied by the increase of the uncertainty of economic policies,which intensifies the complexity of the business environment.In the face of future income uncertainty,information noise and information asymmetry and other problems.The need for firms to take more risks when making financial decisions may further strengthen the linkages between firms.Therefore,in the context of economic policy uncertainty,this paper introduces the theory of cogroup effect,conducts in-depth research on the financialization behavior of entity enterprises and puts forward reasonable suggestions,which has relatively important theoretical significance and practical reference value.Based on the review of the existing literature,this paper finds that most of the existing researches are based on the assumption that enterprises make decisions independently,but in fact,there is a correlation between enterprises in the same industry.Therefore,this paper chooses the homogeneity effect of the same industry as the research perspective to study the influence of homogeneity effect on corporate financialization under the background of economic policy uncertainty.In the empirical part,all nonfinancial listed companies are selected as research samples,and sample data from 2007 to 2021 are selected for research.Firstly,the existence of homogeneity effect in enterprise financialization industry is studied.Secondly,it analyzes the change of the homogeneity effect of corporate financialization when the uncertainty of economic policy increases.Finally,the economic consequences caused by the homogeneity effect of financialization industry are studied.In the process of concrete demonstration,this paper adopts the fixed effect model,and the main explanatory variable of industry homogeneity effect is the average degree of financialization of other enterprises in the same industry,so as to analyze the influence of industry homogeneity effect on enterprise financialization.Secondly,the EPU index of China is selected as an index to measure the uncertainty of economic policy,and the changes of the homogenization effect of corporate financialization when the uncertainty of economic policy rises are studied.The changes are further analyzed from the perspectives of enterprises(corporate financing constraints,irreversibility of corporate investment),industries(industry characteristics,industry growth rate)and managers(authority of managers).Managers’ reputation concerns)from three aspects and six aspects of heterogeneity analysis;Finally,from the perspective of excessive financialization and business risk,this paper studies the economic consequences caused by financialization homogeneity effect.Through empirical analysis,the following conclusions can be drawn:(1)there is an industry homogeneity effect in corporate financialization,and the financial information of peer enterprises will also affect the financial decisions of enterprises themselves.(2)The financial homogeneity effect of enterprises is positively moderated by the uncertainty of economic policy,that is,when the uncertainty of economic policy increases,the financial homogeneity effect of enterprises will be intensified.(3)The higher the degree of irreversibility of enterprises’ financing constraints or entity investment,the more significant the exacerbation effect of economic policy uncertainty on enterprises’ financialization homogeneity effect;For non-regulated industries or industries with rapid growth,economic policy uncertainty has a more significant effect on the exacerbation of the homogenization effect.When managers of enterprises have less power or pay attention to their own reputation,economic policy uncertainty has a more significant effect on the exacerbation of the homogenization effect of enterprises.(4)The overfinancialization homogeneity effect exists in enterprises,and the over-financialization homogeneity effect of enterprises is positively moderated by economic policy uncertainty,that is,when economic policy uncertainty increases,the over-financialization homogeneity effect of enterprises will be intensified;The homogenization effect of financialization can increase the operational risk of the firm,and when the uncertainty of economic policy increases,the impact will be exacerbated.