Research On The Influence Of Policy Uncertainty On Corporate Financialization

The manufacturing industry is an important pillar of my country’s real economy,but with the changes in the international situation and the intensification of market competition,manufacturing enterprises are deviating from the industry to seek development,which has led to the trend of "departing from reality to virtuality" in my China’s economy.In the face of policy uncertainty caused by changes in local officials,manufacturing enterprises will make what choices in resource allocation,and whether the local government’s policy incentives can divert enterprise funds to industrial construction are the main research questions in this thesis.First of all,this thesis takes listed manufacturing companies as the research object,draws on the idea of Richardson to establish an inefficient investment model,and constructs an identification model for the appropriateness of corporate financialization,and based on this,it divides the inefficient financial investment of enterprises,and divide the sample enterprises into non-overfinancialized group and overfinancialized group.Secondly,based on the relevant theories and previous empirical research,this thesis explores the impact of policy uncertainty caused by official changes on corporate financialization by using the fixed effect regression model,and introduces one of the external governance variables,product market competition,in order to analyze the mediating of product market competition.In further analysis,heterogeneity is discussed at the level of regions,officials and enterprises,and endogeneity problems are solved through PSM and DID.Finally,according to the research conclusions of this thesis,relevant policy suggestions are put forward to solve the problem of "departing from the real to the virtual".The empirical results show that:(1)Policy uncertainty triggered by changes in local officials can inhibit the level of corporate financialization in the current year and the next year,which confirms that there is an "investment substitution" motive for corporate financialization.The extent of over-financial investment will decrease significantly in the current year.(2)Product market competition is a special external restraining force that can affect the asset allocation behavior of enterprises.Under the fierce market competition environment,policy uncertainty has a stronger inhibitory effect on corporate financialization,but this inhibitory effect is stronger.The effect is not significant in alleviating the degree of excessive financialization,mainly because in the face of fierce market competition,it is difficult for enterprises deeply involved in financialization to gain a foothold in the market of their main business.(3)At the enterprise level,non-politically connected enterprises are more aware of policy uncertainty and state-owned enterprises undertake more policy tasks.Therefore,in these enterprises,policy uncertainty affects the financialization of enterprises.The inhibitory effect is stronger;at the official level,irregular turnover and officials approaching retirement will bring about a higher intensity of policy uncertainty,and the inhibitory effect on corporate financialization is also more significant.(4)Taking the change of local officials as an external shock,the robustness of the above conclusion is confirmed by using PSM,DID and substitution variables.The research conclusions of this thesis can provide a thinking angle for understanding the influence of the government and the market on the asset allocation of enterprises,and provide policy suggestions for improving the market mechanism,the official assessment mechanism,and deepening the innovative development concept of enterprises.