Research on the Impact of Corporate Financialization on Debt Risk under the Perspective of Investment Income

Taking Yunnan Baiyao Group as an Example

Abstract

With the high degree of development of the virtual economy, a variety of financial products, financial instruments are emerging, high profits, high returns, high efficiency of the financial industry so that enterprises in the virtual economy and the financial industry to chase profits, the entity enterprises gradually "off the real to the virtual". Enterprises in the financial industry, speculation and arbitrage, shift the center of gravity of production and operation, to a certain extent, jeopardize the development of the main business, invisible financial structure and capital structure change. Deviation from the main business development will weaken the enterprise foundation, enterprises face greater challenges and risks. Therefore, the study of debt risk of financialization under the perspective of investment income of real enterprises is of great significance for enterprises to prevent risks. In this paper, by selecting Yunnan Baiyao, one of the typical representatives of financialization of real enterprises, the financial statement data of the enterprise from 2017 to 2022 are selected. The impact of financialization on debt risk under the perspective of Yunnan Baiyao's investment income is comprehensively analyzed through both qualitative and quantitative aspects. First of all, the proportion of investment income to net profit will be used as a financialization indicator to analyze the degree of financialization of the enterprise, and the changes of financialization indicators will be analyzed through the major events of the enterprise such as "mixing and reforming" and financialization of the business to provide a factual basis. In measuring Yunnan Baiyao's debt risk, changes in asset structure, short-term and long-term solvency indicators, changes in net cash flow and the ratio of net non-financing cash flow to total liabilities are used to analyze the changes in Yunnan Baiyao's debt risk in the process of financialization. Finally, it reveals the impact of different degrees of financialization on Yunnan Baiyao's debt risk. The research in this paper is not only of great significance for Yunnan Baiyao's debt risk prevention of financialization under the perspective of investment income, but also has certain reference significance and warning effect for other real enterprises, and has certain reference value for alleviating the economic "deconstruction to emptiness" and stabilizing the real economy.