Ownership Concentration, Regional Differences and Corporate Financialization

Abstract

Does the increase in the shareholding ratio of shareholders promote or inhibit the degree of corporate financialization, or does it have other relationships? This paper selects the data of listed companies of non-financial enterprises in Shanghai and Shenzhen from 2008 to 2020, and uses the least squares method to test whether the ownership concentration has an impact on the degree of financialization of enterprises. whether there is a regional effect. The study found that, regardless of the region where the company is located, there is a positive U-shaped relationship between ownership concentration and corporate financialization. The concentration of ownership has an inhibitory effect on the degree of corporate financialization. Therefore, although a moderate degree of ownership concentration will inhibit the degree of financialization of enterprises, differences between regions should be considered when conducting corporate financialization governance. The eastern region should abandon the oppression of the real economy caused by the accumulation of financial resources, and the western region strengthens the institutional environment. Construction and optimization of financial asset allocation.