IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v61y2025i4p837-857.html
   My bibliography  Save this article

Financialization and Stock Volatility of Low-/High-Tech Manufacturing Firms in China: The Moderating Role of M&A

Author

Listed:
  • Shuangyan Li
  • Honghao Si
  • Chang Liu
  • Bei Gao
  • Mingbo Zheng

Abstract

In recent years, the degree of financialization of manufacturing firms may be one of the key factors in the “real to virtual” transition of the Chinese economy. Using data on Chinese listed firms in the low-tech manufacturing sector over the period 2013–2018, this paper examines the relationship between financialization and stock market volatility, and how mergers and acquisitions (M&A) play a moderating role in this relationship. The results show that there is a positive relationship between financialization and stock market volatility, while M&A activity has a negative moderating effect on the relationship. The positive effect of financialization on stock volatility is more pronounced for high-tech firms than for low-tech firms, while the negative moderating effect of M&A on stock volatility is more pronounced for low-tech firms than for high-tech firms. The link between the financialization of high-tech firms and their volatility has been strengthened with the implementation of the Made in China 2025 program. The main conclusions are stabilized after fully accounting for multicollinearity and R&D capital investment. For high-tech firms, financialization has a more pronounced impact on the volatility of non-state-owned firms compared to state-owned firms (SOEs).

Suggested Citation

  • Shuangyan Li & Honghao Si & Chang Liu & Bei Gao & Mingbo Zheng, 2025. "Financialization and Stock Volatility of Low-/High-Tech Manufacturing Firms in China: The Moderating Role of M&A," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 61(4), pages 837-857, March.
    • Handle: RePEc:mes:emfitr:v:61:y:2025:i:4:p:837-857
    DOI: 10.1080/1540496X.2024.2403139
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2024.2403139
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2024.2403139?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:61:y:2025:i:4:p:837-857. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.