Research On The Influence Of Financial Flexibility On Financialization Level Of Manufacturing Enterprises

With the development of China’s economy,non-financial enterprises that pursue profit maximization increasingly prefer financial investment to real asset investment in their business decisions,and eventually evolve into "de-real to virtual",causing serious impact on real investment.As the main body of the real economy,the financial degree of manufacturing enterprises is getting higher and higher,which brings adverse effects on the development of the main business of enterprises and ultimately restricts the development of the real economy of enterprises.And financial flexibility is one of the enterprises have cash reserves and the ability to borrow,can alleviate the financing constraints to the enterprises,provide stable funding to directly affect the enterprise financial and investment decisions,financial flexibility level of enterprises pay attention to the capital use efficiency,is beneficial to the increase production capacity,expanding production investment,strengthen the research and development to cultivate enterprise competitiveness,Then promote the development of the main business of enterprises,financialization of enterprises to a certain extent.In this context,to discuss the relationship between financial flexibility and financialization of manufacturing enterprises is beneficial to help enterprises find the right development orientation and promote the long-term development of enterprises.Therefore,this paper empirically tests the impact of financial flexibility on the financialization level of manufacturing enterprises by using the data of A-share listed manufacturing enterprises in China from 2007 to 2017.Relying on the related theory,analyzes the financial flexibility from the theoretical level of manufacturing enterprise financialization level may produce negative influence,and the mechanism of r&d investment in fixed assets growth and the mechanism,and respectively from the asset scale,the types of ownership,uncertainty of economic policy and financial assets investment period these four aspects to analyze the heterogeneity.The results show that(1)financial flexibility has a significant negative impact on the financialization level of manufacturing enterprises,that is,financial flexibility can reduce the financialization degree of enterprises to a certain extent.(2)In the test of the mechanism,the results show that financial flexibility can reduce the financial level of enterprises by increasing the growth rate of fixed assets,accelerating the purchase and construction of fixed assets and increasing the investment in research and development.(3)In heterogeneity test,the study found that in non-state or assets lower manufacturing enterprise,the financial flexibility more negative impact on the enterprise financialization,uncertainty in the economic policy of high external development environment,financial flexibility more negative impact on the manufacturing industry enterprise financialization,compared with long-term financial assets investment,Financial flexibility has a more significant negative impact on the investment level of short-term financial assets.In order to guide manufacturing enterprises to "get rid of the virtual to the real" and promote the development of the real economy,this paper puts forward several policy suggestions on the basis of the above research conclusions:(1)financial supervision should be strengthened to optimize the financing channels of the real enterprises;(2)to improve the manufacturing business environment and increase the return on investment of entities;(3)improve enterprise financial flexibility awareness,enhance enterprise financial flexibility reserve.