Author(s)

Xianshu Wei ¹

Affiliation(s)

¹ School of Economics and Management, Guangxi Normal University, Guilin, Guangxi, 541000, China

Corresponding Author

Xianshu Wei

ABSTRACT

In the 21st century, the global economic and financial situation has undergone significant changes, and the financialization of the economy has been integrated into multiple aspects of enterprise activities, producing a certain impact. At present, the speed of China's economic structural transformation is significantly accelerating, and the real economy is gradually declining due to multiple factors. Overcapacity has also increased the management pressure on enterprises, and the decline in operating profits is becoming increasingly apparent. In this situation, a large number of enterprises hope to invest in financial assets, and the proportion of internal financial fund allocation is also constantly increasing. In terms of the final profit and return obtained by the enterprise, the proportion of return achieved by financial asset investment is also increasing year by year. This article aims to comprehensively and deeply explore the complex relationship between the financialization of physical enterprises and their value. With the increasing importance of financial activities in enterprise operations, financialization has become a topic of great concern in recent years. Through a comprehensive analysis of existing research, this article attempts to reveal the mechanisms by which financialization affects corporate value, including potential advantages and disadvantages. In addition, this article will also explore the factors that promote the development of financialization, the multidimensional characteristics of financialization, and the broader impact on various stakeholders, in order to help enterprises overcome management difficulties and achieve scientific and rational allocation of internal funds and assets.

KEYWORDS

Enterprise financialization; Enterprise value; influence

CITE THIS PAPER

Xianshu Wei, Research on the impact of financialization of physical enterprises on enterprise value. Financial Engineering and Risk Management (2024) Vol. 7: 103-110. DOI: http://dx.doi.org/10.23977/ferm.2024.070413.

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