Abstract
This paper examines the impact of corporate strategy aggressiveness on the trend of financialization. Taking Chinese A-share listed companies of Shanghai and Shenzhen stock market from 2007 to 2018 as samples, the study finds that there is a positive correlation between corporate strategy aggressiveness and corporate financialization, that is, the more aggressive the company is, the higher its degree of financialization will be. Further research in this paper finds that there is a grouping moderating role of profitability and analyst concerns in the mechanism of the impact of corporate strategy on corporate financialization. Companies with weaker profitability and higher analyst attention level are more likely to have financialization tendency. The research of this paper expands the influencing factors of corporate financialization, and confirms that the degree of corporate strategy aggressiveness has a positive impact on corporate financialization, which has important practical significance for promoting the further development of strategic management practice of China's non-financial listed companies.
Highlights
IntroductionMarket demand is shrinking, while more and more enterprises are overcapacity
In recent years, market demand is shrinking, while more and more enterprises are overcapacity
Financialization index (FIN) is positively correlated with strategic aggressiveness (STRA), and the correlation coefficient is 0.029, which is significant at the level of 1%, which can preliminarily support Hypothesis 1 (H1) of this paper
Summary
Market demand is shrinking, while more and more enterprises are overcapacity. This paper takes Chinese A-share listed companies of Shanghai and Shenzhen stock market from 2007 to 2018 as samples to study the influence of strategic aggressiveness on financialization choice of enterprises. It mainly investigates the following three questions: First, does the degree of strategic. This paper confirms that a high degree of strategic aggressiveness can promote corporate financialization, and provides more ideas and perspectives for the research on the influencing factors of corporate financialization. It analyzes the moderating role of profitability and analyst concerns in corporate financialization caused by strategic aggressiveness All these have expanded relevant researches in the field of financialization. The rest of this paper is arranged as follows: the second part is the literature review and research hypothesis, the third part is the research design, the fourth part is the results analysis, the fifth part is the robustness test, and the sixth part is the research conclusion
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