IJFS, Vol. 13, Pages 160: A Study of the Impact of Corporate Financialisation on Capital-Deepening Enterprises’ Output—Empirical Evidence from China’s A-Share Market

International Journal of Financial Studies doi: 10.3390/ijfs13030160

Authors:
Yunsong Wang

With the continuous deepening of the financialisation level of Chinese enterprises, the output of capital-deepening enterprises is inevitably affected. Taking A-share listed companies on the Shanghai and Shenzhen Stock Exchanges in China from 2007 to 2021 as the research sample, this paper explores the impact of enterprise financialisation on the output of capital-deepening enterprises and its underlying mechanism. The research findings indicate that enterprise financialisation negatively influences the output of capital-deepening enterprises. Through the analysis of the theoretical model in this paper, it is found that the mechanism leading to this economic effect is that enterprise financialisation significantly inhibits capital deepening. The heterogeneity analysis reveals no significant differences in the negative impact of enterprise financialisation on capital output, deepening enterprises across different aspects such as ownership, region and industry. This paper provides theoretical support for curbing the excessive financialisation of capital-deepening enterprises. It is conducive to the long-term and sustainable development of capital-deepening enterprises and offers a new perspective for researching the economic effects and internal mechanisms of enterprise financialisation.

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