Analysis on the motivation of financial investment and the influence of financial risk of listed enterprises: A case study of A-share manufacturing industry

Article type: Research Article

Authors: Peng, Yunxiang^a | Tian, Guixian^{b; *}

Affiliations: [a] School of Finance and Economics, Guangdong University of Science and Technology, Dongguan, Guangdong, China | [b] School of Business, Pingxiang University, Pingxiang, Jiangxi, China

Correspondence: [*] Corresponding author: Guixian Tian, School of Business, Pingxiang University, Pingxiang, Jiangxi, China. E-mail: [email protected].

Abstract: With the deepening of enterprise financialization, the trend of “moving away from reality to emptiness” has increased the difficulty of financial management in the manufacturing industry. This paper selects the data of A-share main board listed companies from 2012 to 2021 to study the motivation of financial investment in the manufacturing industry and its impact on financial risk. The research results show that the main motivation of listed companies’ financial investment in the manufacturing industry is “substitution” motivation. With the purpose of maximizing profits, the excessive allocation of monetary assets, especially long-term financial assets, increases financial risks of enterprises. Furthermore, the financial risk caused by the financial investment of state-owned enterprises is greater.

Keywords: Manufacturing, financialization investment, “substitution” motivation, “reservoir” motivation

DOI: 10.3233/JCM-247270

Journal: Journal of Computational Methods in Sciences and Engineering, vol. 24, no. 3, pp. 1695-1708, 2024