The impact of corporate financialization on stock price crash risk
DOI:
https://doi.org/10.54097/axjz6m91Keywords:
Enterprise Financialization; Stock Price Crash Risk.Abstract
In recent years, the continuous occurrence of stock price crashes and the significant financialization trend of non-financial firms have aroused widespread attention from regulators, investors and academia. Based on the panel data of China’s A-share non-financial listed companies from 2010 to 2023, this paper designed a rigorous empirical research program and utilized descriptive statistical analysis, correlation analysis, multiple regression analysis and other analytical methods to explore the impact of enterprise financialization on stock price crash risk. The empirical results show that enterprise financialization is conducive to attenuating future stock price crash risk.
Downloads
References
Jin, L., Myers, S.C., 2006.R2 around the world: new theory and new tests. J. Financ. Econ.79(2): 257-292
Demir, F. Capital Market Imperfections and Financialization of Real Sectors in Emerging Markets: Private Investment and Cash Flow Relationship Revisited [J]. World Development, 2009, 37, (05): 953-964.
Yong Du, Huan Zhang, Jianying Chen. The impact of financialization on the future main business development of real enterprises: Promotion or inhibition [J]. China industrial economy, 2017, (12): 113-131.
Xin Lin, Lina Yu, Jinhong Zhang. How does financialization affect innovation investment of SMEs? --Based on the dual perspectives of financialization returns and financial asset allocation [J]. Finance Theory and Teaching, 2023, (04): 25-34.
Tiancai Xing, Xue Li, Bichen Suo. How the Financialization of Non-Financial Enterprises Affects the Development of the Enterprises' Main Business [J]. Research on Financial Issues, 2023, (12): 75-90.
Epstein G. Financialization and the World Economy [R]. Northampton, MA: Edward Elgar, 2005.
Orhangazi O. Financialization and Capital Accumulation in the Non-financial Corporate Sector: A Theoretical and Empirical Investigation on the US Economy:1973-2003 [J]. Cambridge Journal of Economics, 2008, 32(06): 863-886.
Jun Song, Yang Lu. The U-Shaped Relationship between Non-Monetary Financial Assets and Operating Returns-Evidence from Financialization of Listed Non-Financial Firms in China [J]. Financial Research, 2015, (06): 111-127.
Amin G S, Kat H M. Hedge Fund Performance 1990-2000: Do the “Money Machines” Really Add Value [J]. Journal of Financial & Quantitative Analysis, 2003, 38(02): 251-274.
Crotty J. The Neoliberal Paradox: The Impact of Destructive Product Market Competition and Impatient Finance on Nonfinancial Corporations in the Neoliberal Era [J]. Neoliberal Era [J]. Review of Radical Political Economics, 2003, 35(03): 271-279.
Hongjian Wang, Mangmang Li, Taijie Tang. Drivers of cross-industry arbitrage in real firms and its impact on innovation [J]. China Industrial Economy, 2016(11): 73-89.
Danwen Chen. Exploration of the impact of financialization behavior of real enterprises [J]. Modern Business Industry, 2023, 44(17): 81-83.
Yinhan Guo, Ye Zhu. Intentional or Unconscionable Actions--Enterprises' “Departure from Reality to Virtualization” under the Uncertainty of Economic Policies [J]. Economic Management, 2020, 42(07): 40-55.
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Journal of Education, Humanities and Social Sciences
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
