Non-Financial Enterprise Financialization, Product Market Competition, and Total Factor Productivity of Enterprises

Long Miao, Yue Zhuo, Haojun Wang and Bei Lyu ()

SAGE Open, 2022, vol. 12, issue 2, 21582440221089956

Abstract: At present, two big challenges have struck China’s economic development: economic containment “from the real to the virtual†and accomplishment in the goal of high-quality economic development. Taking China’s A-share public manufacturing enterprises from 2007 to 2020 as samples, this paper empirically analyzes the relationships among product market competition, non-financial enterprise financialization, and total factor productivity of enterprises. It is found that non-financial enterprise financialization significantly lowers down the total factor productivity of enterprises, that is, the total factor productivity of enterprises will drop by 1.7% as the non-financial enterprise financialization rises by 1 SD every time. After external regulation effects of product market competition are further taken into account, the furious product market competition, on the whole, mitigates the negative influences of non-financial enterprise financialization on total factor productivity of enterprises by strengthening the role of non-financial enterprise financialization as a “reservoir†and abating the “crowding-out†effect. Therefore, competition promotion policies combined with funds moving “from the virtual to the real†could more effectively elevate the enterprise productivity.

Keywords: non-financial enterprise; financialization; product market competition; total factor productivity; empirical study (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:12:y:2022:i:2:p:21582440221089956

DOI: 10.1177/21582440221089956

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