Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

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Does Institutional Investor Ownership Reduce Corporate Financialization? An Empirical Study for Chinese Enterprises

Authors
Jie He1, *,a, †, Jiaxu Liu2, *, b, †, Haoyuan Qiu3, *, c, †, Kehan Zhai4, *, d, †
1UCL School of Management, University College London, England, WC1E 6BT, UK
2School of accounting, Chongqing Finance and Economics College, Chongqing 401320, China
3School of Finance, Shandong University of Finance and Economics, Shandong 250002, China
4Faculty of Business, Monash University, Melbourne, Victoria 3145, Australia
†

These authors contributed equally.

*Corresponding author. Email:ajie.he.20@ucl.ac.uk
Corresponding Authors
Jie He, Jiaxu Liu, Haoyuan Qiu, Kehan Zhai
Available Online 26 March 2022.
DOI
10.2991/aebmr.k.220307.100How to use a DOI?
Keywords
financialization; institutional investors; Chinese enterprises
Abstract

In recent years, the financialization of real enterprises has gradually attracted extensive attention from all walks of life. In the period of rapid development of the financial industry at this stage, the funds held by enterprises are continuously withdrawn from the interior, poured into non-main financial fields, squeezed out R&D investment and fixed asset investment, and reduced the sustainable development ability of enterprises. Therefore, the problem of “from reality to emptiness” needs to be curbed urgently. It is urgent to restore and consolidate the pillar position of real industry in Chinese economy. Taking the A-share listed companies from 2007 to 2020 as the research sample, this paper studies the impact of institutional investor ownership on the level of corporate financialization. We find that institutional investor ownership can significantly reduce corporate financialization. This result is solid after re-estimating the regression model using the firm and year fixed effects model and adding more control variables into regression models. In addition, we also find that the effect of the constraints of institutional investors on corporate financialization is more pronounced in firms with Big 4 auditors.

Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 March 2022
ISBN
978-94-6239-554-1
ISSN
2352-5428
DOI
10.2991/aebmr.k.220307.100How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

risenwbib
TY  - CONF
AU  - Jie He
AU  - Jiaxu Liu
AU  - Haoyuan Qiu
AU  - Kehan Zhai
PY  - 2022
DA  - 2022/03/26
TI  - Does Institutional Investor Ownership Reduce Corporate Financialization? An Empirical Study for Chinese Enterprises
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 623
EP  - 631
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.100
DO  - 10.2991/aebmr.k.220307.100
ID  - He2022
ER  -