Research On The Influence Of Enterprise Financialization On The Operating Performance Of Listed Companies

With the slowdown of China’s macroeconomic growth and the rise of foreign trade protectionism,real enterprises are facing the difficulties of insufficient domestic demand and weak foreign demand.As the profit margin of the real industry gradually narrows,some real enterprises gradually take financial assets such as stocks,funds and derivatives as one of their main investment focuses in order to seek profit growth.The scale of financial assets held by enterprises is increasing,which may affect the business performance of enterprises.Then,whether the allocation of financial assets by real enterprises can improve the business situation of enterprises,what is the relationship between financial investment and business performance under the influence of different factors,and what ways the financial investment behavior of enterprises will affect business performance? This has always been an important issue of concern to listed companies and financial regulators.Based on this,this paper deeply studies the impact mechanism of enterprise financialization on the operating performance of listed companies,which is of great significance to guide enterprises to allocate financial assets reasonably and achieve the healthy development of China’s real economy.This paper takes the A-share non-financial listed companies from 2016 to 2021 as the research samples,and explores the mechanism,transmission path and related regulatory effects of enterprise financialization on its business performance based on the two different effects of "reservoir effect" and "crowding out effect".According to the empirical results,this paper draws relevant research conclusions:(1)there is a significant inverse "U" relationship between the financialization of enterprises and the operating performance of listed companies.Excessive or insufficient investment in financial assets will inhibit the performance of enterprises.(2)There are significant differences in the relationship between financialization and business performance under different property rights.The inverse "U" relationship between financialization and business performance is more significant in non-state-owned enterprises,but not in state-owned enterprises.(3)Compared with enterprises with low financing constraints,the operating performance of enterprises with high financing constraints is more sensitive to changes in the degree of financialization.(4)The loose monetary policy exacerbates the "crowding out effect" of financialization,thereby increasing the negative impact of financialization on business performance.(5)The level of industrial investment has a partial mediating effect between enterprise financialization and business performance.The financialization behavior of enterprises directly affects business performance through the path of industrial investment level.According to the research conclusions,this paper puts forward relevant policy recommendations.First,non-state-owned enterprises should appropriately participate in financialization to improve business performance,and at the same time,strengthen the supervision of financial investment to avoid excessive financialization;State owned enterprises should improve the efficiency of the use of funds,relax the control of funds,reduce government intervention in investment,and further promote the separation of government and enterprise.Second,enterprises with high financing constraints should carefully invest in financial assets,reduce the crowding effect of financial investment on real investment,and maximize investment benefits.Third,under the loose monetary policy,enterprises should guard against speculation,focus on investment in main business and R & D innovation,and achieve industrial transformation and upgrading.Fourth,real enterprises should establish a sound governance mechanism,improve their financial risk management ability,and comprehensively investigate the impact of financialization on business performance.