Research On The Impact Of Common Institutional Ownership On Corporate Financializatio

The 20 th National Congress of the Communist Party of China(CPC)pointed out that the focus of economic development should be on the real economy,further emphasizing the importance of the real economy.However,in the past decade or so,there has been a trend of "moving away from reality to emptiness" in China’s overall economy.Enterprises pursue the high returns brought by financial assets,gradually ignoring the development of their main businesses,squeezing out R&D and innovation investment,and hindering their sustainable development.In recent years,the government has guided and supported institutional investors to hold shares in listed companies,helping companies alleviate financing constraints,and strengthening corporate governance.At the same time,the economy has entered a new normal,with frequent mergers and acquisitions by institutional investors.In China’s capital market,it is increasingly common for an institutional investor to hold shares in multiple companies in the same industry,which is referred to by relevant scholars as joint institutional ownership.Joint institutional ownership can exert resource,information advantages,and supervisory and governance effects.Whether it can effectively exert its advantages to suppress the preventive and speculative motives of corporate financialization and promote the "transition from virtual to real" of the economy has become the focus of this article.This article selects the data of non-financial listed companies in the Shanghai and Shenzhen A-share markets from 2007 to 2021 as a research sample to analyze the impact of joint institutional ownership on corporate financialization,and analyzes its mechanism from the perspective of financing constraints and corporate governance.This article conducts a robustness test on the above research,followed by a heterogeneity test from three aspects:property rights nature,industry type,and capital market environment,And further analyzes the impact of joint institutional ownership on enterprise innovation.Based on the case study of Aier Ophthalmology,this article finally draws the following conclusions: First,joint institutional ownership can effectively inhibit corporate financialization;Second,joint institutional ownership can alleviate the financing constraints of enterprises,strengthen internal corporate governance,reduce agency costs,suppress preventive and speculative motivations for financialization,and reduce the degree of enterprise financialization;Thirdly,the inhibitory effect of joint institutional ownership on the financialization of non-state owned enterprises and non manufacturing enterprises is relatively high,and when the capital market is in a bull market,the inhibitory effect of joint institutional ownership on the financialization of enterprises is stronger;Fourth,joint institutional ownership can significantly promote enterprise innovation.