The Effect Of Corporate Financialization On Investment Efficiency

The investment efficiency of enterprises has always been the focus of academic circles.In recent years,under the background of fierce competition in the product market,declining market demand,and substantial reduction in the return on investment of real enterprises,enterprise financialization is coming to a climax,and the overall trend of our national economy is "turning from real to virtual".The proportion of investment financial assets in the total investment of an enterprise is an important form of corporate financialization.The allocation of enterprise investment in the financial market directly affects the overall investment behavior of an enterprise,and thus affects the investment efficiency.Previous studies have drawn different conclusions on the relationship between the two.In the current economic era,interlocking directors are common in enterprises,so introducing interlocking directors network to study the relationship between financialization and investment efficiency is of great significance for the improvement of enterprise investment efficiency and the more efficient development of Chinese economy.This thesis selects the annual data of Chinese A-share listed companies from2012 to 2020 as research samples.Based on preventive savings theory,information asymmetry theory,resource dependence theory and social network theory,this thesis makes theoretical analysis on the influence of corporate financialization on investment efficiency and the regulating effect of interlocking director network,and puts forward A series of relevant hypotheses.Literature analysis was used to sort out and analyze existing documents,social network analysis was used to calculate the central location and structural hole location of interlocking director network,and network map was drawn as the data basis for empirical research.Select reasonable variables,design models and use panel data model to explore the influence of corporate financialization on investment efficiency and the regulating effect of interlocking director network on the relationship between them.The empirical analysis draws the following conclusions:(1)there is a nonlinear inverse "U"-shaped relationship between enterprise financialization and investment efficiency,indicating that reasonable allocation of financial assets will improve the investment efficiency of enterprises,while excessive holding of financial assets will reduce the investment efficiency of enterprises;There is a significant inverse U-shaped relationship between financialization and investment efficiency in manufacturing enterprises.The inverse U-shaped relationship between financialization and investment efficiency of non-manufacturing enterprises is not significant.(2)The centrality of interlocking director network has a positive moderating effect on the relationship between corporate financialization and investment efficiency;The central location of the chain director network in manufacturing enterprises has a inhibitory effect on the relationship between financialization and investment efficiency.Due to the limitations of my research level and the general classification of non-manufacturing industry,the sample data results of this paper show that the central location of the chain director network of non-manufacturing enterprises has almost no regulating effect on the relationship between corporate financialization and investment efficiency.(3)The location of structural holes in the interlocking director network has a positive moderating effect on the relationship between corporate financialization and investment efficiency,that is,the more holes in the interlocking director network,the greater the impact of corporate financialization on investment efficiency.Considering the influence of industry inhibition,it is concluded that the location of the structure hole of the interlocking director network of manufacturing enterprises and non-manufacturing enterprises can promote the relationship between financialization and investment efficiency.