An Empirical Study On The Influence Of Financialization Of Listed Companies On Business Performance

Since the 20th century,listed companies have increased the investment scale of financial assets year by year,and the proportion of financial assets in total assets continues to increase.The allocation of financial assets by enterprises can alleviate financing constraints and improve business performance to a certain extent.However,excessive financialization can easily exacerbate corporate financing difficulties and hinder the real economy.In this regard,the 20th National Congress of the Communist Party of China clearly stated that "the focus of economic development should be on the real economy.",Developing the real economy is an important task in China’s economic construction.However,the phenomenon of "shifting from reality to emptiness" in China’s real economy still exists,and many scholars focus on the impact of this phenomenon.Based on the annual data of A-share non-financial listed companies in China from 2012-2021,this thesis studies the impact of enterprise financialization on business performance and the intermediary effect of financing constraints.Firstly,construct a fixed effect model to analyze the impact of financialization on business performance;Secondly,using the three step method to test the mechanism of financing constraints;Thirdly,further explore the impact of different types of financialization on business performance,as well as the intermediary effect of financing constraints;Finally,a heterogeneity analysis was conducted and the following conclusions were drawn:(1)There is a significant inverted U-shaped relationship between financialization and performance,which means that business performance tends to increase first and then decrease with the increase of financialization.Specifically,moderate financialization can promote business performance,while excessive financialization can inhibit business performance.(2)The intermediary effect of financing constraints on the two is established,namely,the transmission mechanism of "enterprise financialization-financing constraints-business performance" is established.(3)For different types of financial assets,the corporate financialization of short-term financial assets has an inverted U-shaped relationship with operating performance,while the financialization of long-term financial assets has a inhibitory effect on operating performance;In the analysis of different types of financialization and business performance,the intermediary effect of financing constraints is established.(4)For different regions,there is an inverted U-shaped relationship between the two in the eastern region,while there is no such relationship in the central and western regions.The research significance of this article is to enrich relevant research on financialization and broaden research horizons by analyzing the relationship between enterprise financialization and business performance.It is beneficial for non-financial listed companies in China to realize the advantages and disadvantages of financialization and the importance of reasonably selecting the proportion and type of financial assets;It is conducive to the rational use of financial assets by enterprises based on their own conditions,improving their own financing constraints,improving operational performance,enhancing financial services to the real economy,and achieving their own high-speed and stable expand.