Strategic Positioning Affect Corporate Financialization
DOI:
https://doi.org/10.54691/bcpbm.v15i.256Keywords:
Corporate Strategy; Corporate Financialization; Profitability; Analyst Concerns.Abstract
This paper examines the impact of corporate strategy aggressiveness on the trend of financialization. Taking Chinese A-share listed companies of Shanghai and Shenzhen stock market from 2007 to 2018 as samples, the study finds that there is a positive correlation between corporate strategy aggressiveness and corporate financialization, that is, the more aggressive the company is, the higher its degree of financialization will be. Further research in this paper finds that there is a grouping moderating role of profitability and analyst concerns in the mechanism of the impact of corporate strategy on corporate financialization. Companies with weaker profitability and higher analyst attention level are more likely to have financialization tendency. The research of this paper expands the influencing factors of corporate financialization, and confirms that the degree of corporate strategy aggressiveness has a positive impact on corporate financialization, which has important practical significance for promoting the further development of strategic management practice of China's non-financial listed companies.
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