A Study On The Mechanism Of Financialisation Of Real Enterprises On Long-term Corporate Performance

The trend of economic globalization and financial liberalization has promoted the rapid development of financial market in our country.With the widening gap of ROI between the financial assets and fixed assets,many real enterprises choose to invest their funds in the capital market and the real estate market,forming the phenomenon of the corporate financialization of real enterprises and causing the trend of the real economy from the real to the virtual.Through literature review,it is found that current scholars have formed two mainstream views on the issue of corporate financialization:crowding-out effect and precautionary saving theory.However,studies on the economic consequences and impact mechanism of financialization of entity enterprises have not yet reached a consistent conclusion.Whether enterprises engage in financialization activities will pose a threat to their long-term development,and through what mechanism will the impact be made.All these problems urgently need further research and verification.Therefore,based on the background of the socialist market economy system with Chinese characteristics,this thesis takes Chinese A-share listed entities as the research object,comprehensively applies the resource allocation theory,enterprise investment theory and principal-agent theory,theoretically analyzes and empirically tests the impact of the financialization of entities on the long-term performance of enterprises,as well as its internal mechanism and external heterogeneity.And from the perspective of corporate governance to test the effectiveness of corporate financialization governance mechanism,finally based on the research conclusions put forward relevant countermeasures and suggestions.Through the empirical test,this thesis mainly draws four conclusions:first,there is a negative correlation between the financialization of entity enterprises and the long-term performance of enterprises.Second,the level of physical capital investment and R&D investment has a partial mediating effect on the relationship between financialization and long-term performance of enterprises.Third,property rights and industry attributes have a moderating effect on the relationship between financialization and long-term performance of entities.Fourth,corporate equity checks and balances,internal control and executive equity incentives can effectively mitigate the negative impact of entity financialization on corporate long-term performance,and play a positive role in the governance of corporate financialization.The innovations of this thesis can be summarized as the following three points:firstly,this thesis innovatively defines the concept of the financialization of real enterprises from the perspective of long-term strategy,with the view that the financialization behavior of enterprises is a strategic decision based on investment motivation.Secondly,from the perspective of enterprise strategy,it explores the influence mechanism of the allocation of long-term investment financial assets by entities on the long-term performance of enterprises,breaking through the limitations of the existing research focusing on short-term effects.Thirdly,it comprehensively considers the influence of industry heterogeneity and property rights heterogeneity on the economic consequences of the financialization of real enterprises,and explores the governance mechanism of the financialization of real enterprises from the perspective of corporate governance,which further enriches the research content of the financialization of real enterprises.