Research On The Impact Of Corporate Financialization And Agency Costs On Earnings Sustainabilit

The sustainable development of the national economy cannot be separated from the traditional real industry,and the core competitiveness of every enterprise lies in the real management level.In recent years,problems such as shrinking profit space,increasing operating costs and shrinking market demand have gradually emerged in the real industry market.Under such a background,a large number of industrial capital has been transferred to the financial field with higher investment returns,among which the most common way is to allocate financial assets.However,due to the imperfection of the development of the financial market itself,some problems may occur in the process of financial asset investment,which will lead to adverse fluctuations at the level of real management.In the short term,enterprises can get a higher rate of return by flowing funds to the financial sector,which is conducive to the stability of capital circulation and the improvement of enterprise value.However,in the long run,when the total amount of funds is fixed,the financial behavior of enterprises leads to a substantial reduction of funds that should be used for entity operation,weakens the foundation of enterprise development,and restrains the ability of long-term and orderly development.Earnings sustainability is an important financial index to measure the sustainable development ability of enterprises.In the context of the "real economy from real to virtual",it has become a problem worth further study to study how and how the financialization behavior of enterprises will affect earnings sustainability.In recent years,the relationship between corporate financialization and earnings persistence has attracted the attention of scholars,but there is a lack of research on the intermediary mechanism of the two.Therefore,based on the empirical test of the relationship between financialization and earnings persistence,this paper further examines the mediating effect of agency costs in the relationship between financialization and earnings persistence.At the same time,as an important part of the external governance mechanism,what kind of moderating role does the analyst play? Based on this,this paper selects data samples of Shanghai and Shenzhen A-share listed companies in China’s non-financial and non-real estate industries from2012 to 2021 as research objects.On the theoretical basis of the principal-agent theory,financing constraint theory,preventive savings theory,investment substitution theory,management short-sighted theory and information asymmetry theory,the following aspects are studied: First,the hypothesis of the impact of corporate financialization on earnings sustainability;Second,the mediation hypothesis of agency cost;Third,analysts focus on the moderating hypothesis.The results show that: first,there is a negative correlation between corporate financialization and earnings sustainability,that is,the higher the degree of financialization,the lower the earnings sustainability;2.Agency costs play a partial mediating role in the relationship between financialization and earnings sustainability;Among them,the degree of enterprise financialization is positively correlated with agency cost,that is,the higher the degree of enterprise financialization,the higher the agency cost.There is a negative correlation between agency cost and earnings persistence.The higher agency cost is,the worse earnings persistence is.3.Analysts focus on significantly easing the inhibition effect of the degree of corporate financialization on earnings sustainability;Among them,analyst attention is positively correlated with earnings sustainability,that is,analyst attention can promote earnings sustainability.Finally,based on the above research conclusions,this paper puts forward targeted suggestions and measures on the current situation of corporate financialization and earnings sustainability from the government level and enterprise level,which will help promote the healthy development of Chinese capital market and encourage enterprises to improve their own system and maintain long-term and stable operation.