The Impact of Shadow Banking on the Business Operation Risks of Real Enterprises

Abstract

Under the downward pressure of the global economy, real enterprises, in search of new growth drivers, have successively reduced productive investment and shifted to the financial sector, making the phenomenon of engaging in shadow banking business increasingly common. This paper takes the balance sheet data of Chinese A-share listed real enterprises from 2010 to 2023 as a sample. This period covers economic fluctuations, so the data is representative. A two-way fixed effect model is used for benchmark regression, which can effectively control individual and time differences; the instrumental variable method is applied to test endogeneity to ensure the robustness of the results. The study finds that shadow banking business of real enterprises will push up operational risks. At the same time, the decline in their operating performance and the reduction in real investment efficiency will reversely exacerbate operational risks and play an intermediary role in the relationship between the two. This conclusion provides an important basis for real enterprises to scientifically formulate operational and fund management strategies.