Do the government subsidies inhibit the entity over-financialization? Fresh evidence from China

Can Green Mergers and Acquisitions Curb the Financialization of Heavily Polluting Enterprises? Evidence From China

“…An interesting point is that we confirm the role of precautionary motives between green M&A and corporate financialization, but not speculative motives. Contrary to what existing scholars have argued, corporate financialization in China is primarily driven by speculative motives [1,28,29]. This result suggests that the financialization of Chinese enterprises is not entirely driven by speculation, and at least the precautionary motive plays a dominant role when enterprises engage in green M&A behavior.…”

“…This implies that the main mechanism by which green M&A inhibits corporate financialization is the precautionary motive. The preventive motive and the speculative motive are the two main motives for corporate financialization, and most scholars believe that corporate financialization in China is primarily driven by speculative motives [1,28,29]. We speculate that the result may be related to the characteristics of green M&A.…”

“…For non-financial enterprises, financialization as an investment strategy can be beneficial not only for devoted to financial investments. In more detail, from the perspective of physical investment return enhancement, Xu et al [29] believed that the better the main business performance and the higher the profitability, the lower the degree of corporate financialization.…”

Does controlling shareholders’ share pledge exacerbate excessive financialization of enterprises?—Evidence from performance pressure perspective

“…At the macro policy environment level, the uncertainty of economic policy will affect the financial investment behavior of enterprises [ 18 , 19 ], but the impact direction is still controversial. The uncertainty of Climate policy, the introduction of local industrial policies and the improvement of fiscal transparency can inhibit the enterprise financialization [ 20 – 22 ], while the margin trading system will intensify the enterprise financialization [ 23 ]. By combing relevant literature, it can be found that most of the existing literature directly defines financialization as excessive, without considering the heterogeneity between moderate and excessive financialization.…”