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Financial-industrial integration and corporate financialization: Evidence from China

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  • Wang, Fang
  • Hou, Jingru

Abstract

This paper investigates the impact of financial-industrial integration on firm financialization. The findings indicate that financial-industrial integration negatively influences firm financialization, particularly in enterprises with high reliance on external financing, low credit differentiation, and digital transformation. Furthermore, financial-industrial integration inhibits corporate financialization by optimizing expectations, alleviating financing constraints, and mitigating risk. These research findings offer empirical evidence for solving the problems related to corporate financialization.

Suggested Citation

  • Wang, Fang & Hou, Jingru, 2024. "Financial-industrial integration and corporate financialization: Evidence from China," Finance Research Letters, Elsevier, vol. 69(PA).
    • Handle: RePEc:eee:finlet:v:69:y:2024:i:pa:s1544612324011693
    DOI: 10.1016/j.frl.2024.106140
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    References listed on IDEAS

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    More about this item

    Keywords

    Financial-industrial integration; Corporate financialization; Anticipatory optimization; Financing constraint; Risk reduction;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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