Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2022.2106268
Do the government subsidies inhibit the entity over-financialization? Fresh evidence from China
Chaohui Xu
Mansi Wang
Haikuan Zhang
Xinyi Hong
Sažetak
In order to verify effect of the industrial policies on solving the
problem of market failure, we collect the data from China A-share
listed companies among 2008-2019, and analyze the effect of government
subsidies on the entity over-financialization. The results
show that government subsidies significantly inhibit the entity
over-financialization. Because the government subsidies could
increase the performance of enterprise’s main business and level
of the enterprise’s profitability. Subsequently, the enterprise’s arbitrage
from cross-industries and the managers’ composition could
be decreased. Consequently, government subsidies could reduce
the entity over-financialization by the reduce of enterprise’s arbitrage
from multi-industries and increase of the managers’ composition
which is related to the enterprise’s performance. The results
also indicate that the entity financialization is mainly motivated by
enterprise arbitrage rather than ‘preventive reserve’ in China.
Moreover, the inhibitory effect of government subsidies on the
entity over-financialization is only significant in the enterprises
with non-state-owned, high-tech, and higher level of demand of
innovation. Thus, the government should accurately implement
subsidy policies for the enterprises and increase the supports for
enterprises with high-tech and higher level of demand of innovation,
which could promote economy high-quality development.
Ključne riječi
Government subsidy; overfinancialization; arbitrage
Hrčak ID:
306616
URI
Datum izdavanja:
30.4.2023.
Posjeta: 150 *