Research On The Impact Of Government Venture Capital On Enterprise Financialization

In recent years,due to the downward pressure of the domestic economy and the dual impact of shrinking foreign demand.China’s real economy investment income has been declining.Therefore,more and more physical enterprises are eager to make financial investments,and the problem of the financialization of physical enterprises is becoming increasingly serious.In the long run,the "shifting away from reality to emptiness" of physical enterprises will have a crowding out effect on their main businesses,thereby harming the long-term interests of the enterprise.At the same time,the "shifting from reality to emptiness" of a country’s physical enterprises can easily lead to serious financial crises,which is not conducive to the long-term and healthy development of China’s economy.Therefore,how to suppress the deepening of the financialization of physical enterprises is of great practical significance both for the long-term development of enterprises and for the prosperity and stability of China’s economy.This article summarizes the relevant literature on state-owned background venture capital and enterprise financialization at home and abroad,as well as the relevant basic theories involved.On this basis,this article further analyzes the development status of stateowned background venture capital in China,and takes manufacturing enterprises listed on the GEM from 2011 to 2021 as research samples.This paper analyzes the impact effect and mechanism of state-owned venture capital on enterprise financialization.In addition,considering that there are differences in the development of venture capital undertakings in different regions of China,and the business objectives and strategies of enterprises at different stages of development are different.This article further analyzes the heterogeneity from the perspective of the location and life cycle of the sample enterprises.The research results show that:(1)state-owned venture capital has an inhibitory effect on enterprise financialization,and the joint investment of multiple state-owned background venture capital institutions has a stronger inhibitory effect on enterprise financialization.(2)State-owned background venture capital institutions can alleviate the financing constraints faced by manufacturing enterprises in the process of operation,and strengthen internal supervision to curb the financial problems of sample enterprises.(3)For enterprises in non venture capital center cities and growing enterprises,state-owned background venture capital institutions have a more significant effect on suppressing financialization.Based on the above conclusions,the article puts forward several relevant suggestions on how to alleviate the problem of the financialization of Chinese entity enterprises and how to promote the development of state-owned background venture capital institutions.