The Impact of Industry Expertise Independent Directors on Corporate Financialization: The Case of Chinese Nonfinancial Corporations

Abstract

China's economic development has faced multiple challenges, such as the weakening of traditional growth momentum, frequent risks in the financial sector, and prominent structural contradictions, and the phenomenon of capital flow from real enterprises to the virtual economy has become more and more prominent This paper takes A-share non-financial listed companies from 2010 to 2022 as the research object, and empirically examines the impact of industry expert independent directors on corporate financialization The results show that industry expert independent directors can effectively inhibit the financialization of enterprises, and the inhibition effect is more prominent in non-state-owned enterprises .The industry expert independent directors can inhibit the financialization of enterprises by narrowing the gap between corporate operating income and financial income, and alleviating internal and external financing constraints In addition, the higher the degree of marketization of the company's location, the stronger the inhibitory effect.