Will Financialization Cause Underinvestment?

Yang Yang

《World Scientific Research Journal》 7卷4期 (2021/04) Pp. 384-398

https://doi.org/10.6911/WSRJ.202104_7(4).0046

摘要

In recent years, our country's real economy has increasingly shown a trend from real to virtual. This phenomenon stems from the fact that real enterprises have shifted their investment focus from main business to financial investment, deviating from their business objectives, and having a certain impact on the investment efficiency. This article explores the internal relationship and related transmission mechanisms between financialization and corporate underinvestment. Empirical research results show that financialization will squeeze out the investment scale of real enterprises, leading to insufficient investment in the main business. And further distinguished from the perspective of the term structure of financialization, found that short-term financialization has a more significant effect on exacerbating underinvestment. In addition, it is found that financing constraints, information asymmetry play a corresponding intermediary role in the chain of financialization's impact on underinvestment. The research conclusions of this article not only enrich the research on the economic effects of financialization and the influencing factors of investment efficiency, but also provide a certain enlightenment to our country's policy guidance of real enterprises to ＂de-virtualize to reality＂ and enhance the ability of financial services to serve the real economy.

關鍵字

Financialization ； Enterprise investment efficiency ； Underinvestment ； Internal transmission mechanism

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