Research On The Financialization Of Manufacturing Enterprises And Its Economic Consequences

The real economy is the cornerstone of the development of China’s national economy,which is directly related to social stability and people’s livelihood and well-being.As an important part of the real economy,manufacturing grasps the lifeblood of economic development.Nowadays,affected by the macro environment at home and abroad,the growth rate of manufacturing industry is slowing down,profit margins are smaller,development momentum is insufficient,and manufacturing enterprises are also facing difficulties and challenges such as increasing production costs and declining market competitiveness.In order to improve this situation,enhance the ability to resist external risks,and at the same time seek new profit points,manufacturing enterprises have embarked on the path of financialization development,trying to grab excess returns in the financial field.From the annual reports released by manufacturing enterprises,it can be found that the degree of financialization of enterprises is deepening.However,devoting to the financial field did not improve the operating conditions of enterprises,but crowded out the development of the main business,and the volatility and uncertainty of corporate profits greatly increased.This paper takes Youngor Group,a leading enterprise in the garment manufacturing industry,as a case study to analyze the impact of its financialization on the development of the manufacturing industry.Firstly,the theoretical literature related to financialization is sorted out and summarized,which lays a theoretical foundation for the analysis of the following article.Secondly,it introduces the overall development situation of manufacturing enterprises and analyzes the financialization status of the manufacturing industry.Then,the basic situation of the case enterprise Youngor is summarized,and the motivation of Youngor’s financialization is deeply explored based on the SWOT analysis method,and the financialization level of Youngor is measured in multiple dimensions through three indicators,and the different stages of Youngor’s financialization are divided on this basis.Finally,the economic consequences under different stages of financialization are further analyzed from the two aspects of operational risk and market value.The study finds that different degrees of financialization have different impacts on the development of manufacturing enterprises.Manufacturing enterprises are in the initial stage of financialization,when the scale of financial investment is small,and financial income is more used to expand production,assist the development of the main business,meet the needs of industrial funds,and promote the overall development of enterprises.However,when the degree of financialization of manufacturing enterprises continues to increase,financialization brings more negative effects to enterprises,occupying capital resources of the main business,reducing R&D and fixed investment,affecting future business performance,and worsening the financial status of enterprises.This paper also puts forward corresponding countermeasures and suggestions,hoping that manufacturing enterprises will correctly understand the role and role of financialization in enterprise development,rationally participate in financialization activities,and make financialization better serve the development of the main industry.