Research On The Impact Of Financialization Of Asset Allocation On Financial Performance Of Manufacturing Enterprises

Manufacturing industry is the pillar of the real economy.In recent years,with the slowdown of the growth of the real economy,the return on investment of the financial industry has risen relatively.The profitability of capital drives funds to gradually flow to the "virtual economy" field with higher return on investment,in order to obtain higher return on investment and better financial performance.In this context,many manufacturing enterprises in China are increasingly keen on financial asset investment.As a result,the proportion of financial assets in their total assets keeps increasing,and manufacturing enterprises show a trend of financial asset allocation in different degrees.Then,whether and how does the financialization of asset allocation of manufacturing enterprises affect their financial performance? This is an important theoretical and practical issue that deserves further discussion.The thesis studed the impact of financialization of asset allocation on financial performance of manufacturing enterprises through theoretical analysis and empirical test.Firstly,on the basis of concept definition and theoretical analysis,the thesis analyzed and revealed the influence mechanism of asset allocation financialization on financial performance of manufacturing enterprises.Then,using the data of manufacturing A-share listed companies from 2012 to 2021 as the sample,this thesis verified the impact of asset allocation financialization on financial performance through nonlinear panel regression analysis,and maked heterogeneity analysis according to the different factors such as region,ownership nature and financing constraints.Finally,this thesis summarized and formed the research conclusions,and put forward relevant policy suggestions for the moderate financialization of asset structure and the improvement of financial performance of manufacturing enterprises.Based on the above research,this thesis makes the following conclusions: first,there is an inverted U-shaped relationship between the financialization of asset allocation and financial performance of manufacturing enterprises in China,that is,the appropriate allocation of financial assets of manufacturing enterprises helps to improve their financial performance,while excessive financialization has a negative effect on their financial performance;Second,compared with the allocation of long-term financial assets,the allocation of highly convertible financial assets in manufacturing enterprises will enhance the inverted U-shaped relationship between financialisation and financial performance,that is,the financial performance of manufacturing enterprises is more sensitive to the increase of liquid financial assets.Thirdly,the impact of financialization of asset allocation on financial performance of manufacturing enterprises is heterogeneous.This thesis suggests that China’s manufacturing enterprises appropriately allocate financial assets to improve their overall asset allocation quality and improve their financial performance through the optimization of asset allocation structure.