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The impact of financial agglomeration on corporate financialization: The moderating role of financial risk in Chinese listed manufacturing enterprises

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  • Chen, Liping
  • Zhang, Cheng

Abstract

This paper investigates the impact of financial agglomeration on corporate financialization using data from Chinese listed manufacturing enterprises between 2011 and 2020. By considering financial risk as a moderating variable, the study offers a comprehensive analysis of both the positive and potential negative effects of financial agglomeration on corporate financialization. We find that, first, financial agglomeration significantly promotes corporate financialization. Second, financial risk moderates the relationship between financial agglomeration and corporate financialization. Third, financial agglomeration has a more significant impact on corporate financialization for companies with higher financial risk and non-state-owned enterprises.

Suggested Citation

  • Chen, Liping & Zhang, Cheng, 2023. "The impact of financial agglomeration on corporate financialization: The moderating role of financial risk in Chinese listed manufacturing enterprises," Finance Research Letters, Elsevier, vol. 58(PD).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pd:s1544612323010279
    DOI: 10.1016/j.frl.2023.104655
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    References listed on IDEAS

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    1. Farooq, Omar & Zarouali, Ilham, 2016. "Financial centers and ownership concentration: When is ownership concentration value relevant? Evidence from an emerging market," Research in International Business and Finance, Elsevier, vol. 38(C), pages 236-245.
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    4. Xie, Rui & Fu, Wei & Yao, Siling & Zhang, Qi, 2021. "Effects of financial agglomeration on green total factor productivity in Chinese cities: Insights from an empirical spatial Durbin model," Energy Economics, Elsevier, vol. 101(C).
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    Cited by:

    1. Huang, Yijing & Xu, Zongyu, 2024. "The role of principal-agent in corporate financialization and green innovation," Finance Research Letters, Elsevier, vol. 63(C).
    2. Elena G. Popkova & Muxabbat F. Xakimova & Marija A. Troyanskaya & Elena S. Petrenko & Olga V. Fokina, 2024. "Responsible Innovations as Tools for the Management of Financial Risks to Projects of High-Tech Companies for Their Sustainable Development," Risks, MDPI, vol. 12(2), pages 1-28, January.

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