The Impact of Non-financial Enterprises' Financial Investment Behavior on Their Survival Capability

Tong He

doi:10.54097/q9s9p376

Authors

Tong He

DOI:

https://doi.org/10.54097/q9s9p376

Keywords:

Financialization, Financial Development, Enterprise Survival Capability, Real Economy

Abstract

With the development of financial markets, corporate financialization has become an important trend in the development of non-financial enterprises in China in recent years. This article takes non-financial listed companies on the A-share market from 2010 to 2019 as the research object, exploring the impact of corporate financial investment on the survival ability of enterprises. Research has found that corporate financial investment behavior has a positive effect on the survival ability of enterprises. After discussing the samples, it was found that there are significant differences in the impact of different financial asset investments on the survival ability of enterprises. Short-term financial investments are beneficial to the survival ability of enterprises, while long-term financial investments are detrimental to the survival ability of enterprises. According to the nature of the industry, the sample is divided into high-tech enterprises and non-high-tech enterprises. The research results show that the financialization of enterprises hurts the survival ability of high-tech enterprises and a positive effect on the survival ability of non-high-tech enterprises. This study provides micro-level empirical evidence for the impact of financialization on the real economy and has a certain reference value for the government to guide non-financial enterprises to make correct choices in business operations, asset allocation, and other decision-making.

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