Institutional Ownership and Corporate Financialization: An Analysis Based on Fixed Effects Model
DOI:
https://doi.org/10.54691/bcpbm.v27i.1960Keywords:
financialization; institutional ownership; corporate governance.Abstract
Financialization is the microcosmic manifestation of economy “moving from real to virtual”. Excessive financialization may lead to economic crisis. This paper takes China’s non-financial listed companies from 2008 to 2018 as research samples to empirically test whether institutional ownership accelerate or restrain the financialization of non-financial companies. This study employs fixed effects model and Stata as analytical tool to analyse the interaction between variables. The results show that institutional investors significantly inhibit the financialization of non-financial companies. Further research found that the inhibition effect was more pronounced in firms with better corporate governance, such as those audited by the Big Four accounting firms.
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