IDEAS home Printed from https://ideas.repec.org/h/spr/eurchp/978-3-031-85312-8_7.html
   My bibliography  Save this book chapter

The Dynamics Between Profitability and Financialization in G20 Non-financial Corporations

Author

Listed:
  • Hillarius Mariando Label Dhani Sanjaya

    (Universitas Gadjah Mada)

  • Diny Ghuzini

    (Universitas Gadjah Mada)

Abstract

Recent studies have highlighted the substantial impact of financial asset ownership on the performance of non-financial corporations (NFCs) in the productive sector. However, limited focus has been directed toward investigating how the activities of NFCs in the actual productive sector can, in turn, drive financialization. This research aims to analyze how variables in the real sector, especially profitability, affect financialization. The research was conducted on more than 5000 non-financial companies in G20 countries from 2006 to 2023 using a dynamic panel data model. Our findings are summarized as follows: Real sector profitability has a significant positive effect on the expansion of financial assets among NFCs in G20 countries. Other independent variables tested, such as capital reinvestment, exhibit a negative influence on the expansion of NFCs’ financial assets, while financial sector profitability positively impacts financial assets ownership of NFCs. The research further demonstrates that financialization is associated with a decline in capital intensity within NFCs.

Suggested Citation

  • Hillarius Mariando Label Dhani Sanjaya & Diny Ghuzini, 2025. "The Dynamics Between Profitability and Financialization in G20 Non-financial Corporations," Eurasian Studies in Business and Economics,, Springer.
    • Handle: RePEc:spr:eurchp:978-3-031-85312-8_7
    DOI: 10.1007/978-3-031-85312-8_7
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:spr:eurchp:978-3-031-85312-8_7. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.