Research On The Impact Of Financialization Of Physical Enterprises On Financial Performanc

With the continuous development of China’s financial market and the increasingly perfect structure of financial assets,China’s economy is moving toward financialization,and economic financialization presents a "self-accelerating" character,which brings unprecedented multi-level impact to China’s real economy.Due to lack of innovation,excess capacity,rising costs and other adverse reasons,traditional entity enterprises face the dilemma of declining operating profits.However,the financial and real estate investment fields have made great progress by relying on the policy advantages in the early stage,and with the deepening of financial activity innovation and asset securitization,the overall economic profit has been much higher than the average of the real industry.Driven by the profit-seeking purpose of capital,it has become a common phenomenon that more and more non-financial enterprises obtain high returns through financial channels rather than traditional commodity channels.However,the impact of financial asset allocation of real enterprises on the overall value of enterprises is not good or bad.Under the background of the hot topic of real economy virtualization,this paper discusses the impact of the financialization of real enterprises on the development of enterprises by analyzing the financial performance of enterprises before and after the financialization of the case,and puts forward corresponding countermeasures and suggestions.This paper takes Fujian Septwolves Group as an example,using the combination of theoretical research and case analysis.Firstly,the motivation of enterprise financialization is analyzed from the theoretical level,and the measurement method of enterprise financialization and the related content of financial performance are given.Secondly,the case company Fujian Septwolves Group is described in detail in terms of background,measurement analysis of financialization and motivation analysis of financialization.Finally,through the vertical comparison of financial indicators at different stages before and after the financialization of enterprises,combined with the horizontal comparison of companies in the same industry,the short-term and long-term effects of financialization on the financial performance of enterprises are analyzed,and conclusions are drawn and suggestions are put forward.By analyzing the financial performance of Fujian Septwolves Group before and after financialization,this paper draws the following conclusions: moderate financialization can provide financial support for the development of enterprises’ main business and play the role of "reservoir".However,with the deepening of financialization,there is no positive impact on the solvency,operation capacity and development capacity of enterprises.Although financialization can make up for the deficiency of industrial operation in some years and play the role of supplementing income and profit,such supplementing is not sustainable,and with the excessive development of financialization,it more shows the effect of "investment substitution".Leading to the stagnation of the main business development.In addition,from the perspective of economic added value,financialization does not promote the improvement of enterprise value,but aggravates the instability of enterprise financial performance,resulting in the decline of enterprise overall value.