The Impact of Non-financial Enterprises' Financial Investment Behavior on Their Survival Capability
DOI:
https://doi.org/10.54097/q9s9p376Keywords:
Financialization, Financial Development, Enterprise Survival Capability, Real EconomyAbstract
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.
Downloads
References
[1] Krippner, G.(2005),"The financialization of the American economy", Socio-Economic Review 3(2):173-208.
[2] Smith, C.W.,and R.M.Stulz,1985, “The Determinants of Firms' Hedging Policies”, Journal of Financial and Quantitative Analysis, 20( 4) : 391-405.
[3] Arizala, F., Cavallo, E.A. & Galindo, A.J. Financial Development and TFP Growth: Cross Country and Industry-Level Evidence [J]. Applied Financial Economics, 2013,23(4- 6):433-448.
[4] Orhangazi,O.,2008, “Financialisation and Capital Accumulation in the Non-financial Corporate Sector: A Theoretical and Empirical Investigation on the US Economy: 1973-2003”,Cambridge Journal of Economics,32( 6) ,863-886.
[5] Tornell,A. Real Vs.Financial Investment Can Tobin Taxes Eliminate the lreversibility Distortion[J].ournal of Development Economics,1990,32(2):419-444.
[6] Duchin, R., 2010,“Cash Holdings and Corporate Diversification”, Journal of Finance,65 (3) ,955-992.
[7] Sean,C.,1999,“The Relationship between Fim Investment and Financial Status”,Journal of Finance ,54( 2),673-692.
[8] Zhang Chengsi, 2019 The logic and reflection of financialization [J] Economic research, 54 (11): 4-20.
[9] Zhang Chengsi, Zhang butan, 2016 The mystery of the decline of China's industrial investment rate: from the perspective of economic financialization [J] Economic research, 51 (12): 32-46.
[10] Zhang Chengsi, Zheng Ning, 2018 Research on the impact mechanism of financial investment behavior of Chinese non-financial enterprises [J/OL] World economy, 41 (12): 3-24.
[11] Zhang Chengsi, Zheng Ning, 2023 Hierarchical driving mechanism of financialization in China's industrial sector [J] Financial Research (5): 1-19.
[12] Yang Bing, Yang Yang, Du Jian, 2022 Enterprise risk expectation and investment strategy selection - An Empirical Study Based on annual report text mining [J/OL] Economic management, 44 (2): 122-140.
[13] Yang Songling, Niu Dengyun, Liu Tingli, et al., 2019 Financialization of real enterprises, analyst attention and internal innovation driving forces [J] Management science, 32 (2): 3-18.
[14] Zhang Jun, Jin Yu, 2005 Financial deepening and retesting of productivity relations in China: 1987 - 2001 [J] Economic Research (11): 34-45.
[15] Deren Hsieh, Gao Ju Zhang, 2007 Financial ecological environment, governance effect of debt and debt restructuring: empirical evidence [J] Accounting Research (12): 43-50+96-97.
[16] Du Yong, Zhang Huan, Chen Jianying, 2017 The impact of financialization on the future development of the main business of real enterprises: promoting or restraining [J/OL] China's industrial economy (12): 113-131.
[17] Duan Junshan, Zhuang Xudong, 2021 Financial investment behavior and technological innovation of Enterprises Motivation Analysis and empirical evidence [J/OL] China's industrial economy (1): 155-173.
[18] Ge Xinting, Xie Jianguo, 2022 Does trade intermediaries enhance the viability of local enterprises - A Study Based on China's export microdata [J/OL] International trade issues (11): 123-138.
[19] Lin Hanchuan, Guan Hongxi. Empirical comparative study on the competitiveness of small and medium-sized enterprises in eastern, central and Western China [J]. Economic research, 2004 (12): 45-54.
[20] Liu Xiaoxuan, Zhou Xiaoyan, 2011 A test of the allocation relationship between financial resources and the real economy - also on the reasons for the imbalance of economic structure [J] Financial Research (2): 57-70.
[21] Hu Yiming, Wang Xueting, Zhang Jin, 2017 Motivation for financial asset allocation: "reservoir" or "substitution"-- Evidence from Chinese Listed Companies [J] Economic research, 52 (1): 181-194.
[22] Wang Hongjian, Cao Yuqiang, Yang Qing, et al., 2017 Does the financialization of real enterprises promote or inhibit enterprise innovation - An Empirical Study Based on listed manufacturing companies in China [J] Nankai management review, 20 (1): 155-166.
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Academic Journal of Management and Social Sciences
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.