Impact Of Financialization On Business Performance Of Listed Manufacturing Companies

At present,China is facing the problems of slow domestic economic development and weak international market.Entity industries are generally facing the situation of overcapacity,declining market demand,weak operation and imbalance between supply and demand in the market.The operating return rate of entity enterprises has a downward trend,while the development volume of financial industry and real estate industry has shown vigorous vitality.When entity enterprises are hindered in the progress of their main business and enjoy dividends in financial development,capital is naturally profit-seeking,and enterprises gradually invest capital in the capital market with higher return rate based on profit-seeking motives to seek new profit growth points.When the entity enterprises show the trend of increasing financial development,long-term investment in financial assets takes up the entity investment and R&D investment,which leads to the reduction of investment in the main business and inhibits the technological innovation of enterprises,and the main business is gradually eroded,ignoring the long-term development of the main business.Both the 19 th National Congress of the Communist Party of China and Report to the 20 th CPC National Congress pointed out that the real economy is the cornerstone of development.Manufacturing industry is an important pillar industry in the development of China’s real economy.It is very important to study the positive and negative effects of financialization of manufacturing enterprises on the operating performance of the main business in view of the trend of "deviating from reality to emptiness" in the real economy.Therefore,it is of great theoretical and practical significance to study the influence of financialization of manufacturing enterprises on operating performance.In this thesis,the data of 1216 listed manufacturing enterprises in A-share Shanghai and Shenzhen Main Board and Growth Enterprise Market from 2012 to 2021 are selected as research samples.And from a micro perspective,the index of enterprise financialization degree is constructed,and the nonlinear influence of financialization behavior of manufacturing enterprises on operating performance is empirically studied by using fixed effect regression model and intermediary effect model.Firstly,this thesis analyzes the direct total effect of the degree of financialization of manufacturing enterprises on their operating performance.Then,taking physical capital investment and R&D investment as intermediary variables,this thesis deeply explores the mechanism of the impact of current financialization on business performance;Finally,this thesis introduces three dimensions: plate division,property right nature and enterprise scale to analyze the heterogeneity,and tests whether the financial investment of manufacturing enterprises has a heterogeneous impact on operating performance.The empirical research shows that:(1)there is a weak negative correlation between the financialization of manufacturing enterprises and the operating performance of their main business,and there is a nonlinear "U" relationship between them;(2)The influence of financialization of manufacturing enterprises on physical capital investment is significantly negative.Moreover,the transmission path of negative impact of financialization on operating performance is to suppress the operating performance of the main business by squeezing out physical capital investment.(3)The influence of financialization of manufacturing enterprises on R&D investment is significantly negative,and the mechanism of negative effect of financialization on business performance is to hinder the development of future main business by occupying R&D investment.Based on the research conclusion,this thesis puts forward targeted policy suggestions from the perspective of enterprises and the government.Enterprises should establish a correct concept of financial investment and build a modern management system to ensure that financialization is aimed at serving the main business;The government should create a good financial ecology,strengthen the investment in manufacturing innovation,and make financialization provide the driving force for the innovation and development of enterprises.