Impact of Financialization on Operating Profit of Manufacturing Listed Companies

• Main Authors: Shengdao Gan, Qingying Wang, Qiya Zhang
• Format: Article
• Language: English
• Published: EDP Sciences 2020-01-01
• Series: E3S Web of Conferences
• Online Access: https://www.e3s-conferences.org/articles/e3sconf/pdf/2020/74/e3sconf_ebldm2020_02016.pdf

This study employs a sample of manufacturing listed companies in China from fiscal year 2008 to 2018, analyzes their financial position and operating performance, and explores the impact of financialization on their operating profits. The results suggest that the financialization of manufacturing listed companies will restrain the growth of operating profit, that is the “crowding out” effect. This paper reminds the listed companies’ controlling shareholders of the economic consequences of financialization at the micro level and the significance of improving the company’s core competitiveness, further promotes companies to strengthen the internal control of financialization for sustainable development of the companies.