Financialization, institutional ownership, and long-term performance of growth ChiNext market enterprises

Weibo Hu and Ping Chen

Finance Research Letters, 2025, vol. 78, issue C

Abstract: This study examines the impact of financialization on the long-term performance of companies listed on China's growth enterprise market using a sample covering the period from 2012 to 2022. It also explores the moderating effect of institutional ownership and the mediating role of excess cash holdings in this relationship. The findings indicate that allocating financial assets can enhance corporate value and profitability, ultimately leading to improved long-term performance. However, institutional ownership weakens the positive effect of corporate financialization on long-term performance.

Keywords: Financialization; Long-term performance of enterprises; Institutional ownership; Excess cash holding (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:78:y:2025:i:c:s1544612325003435

DOI: 10.1016/j.frl.2025.107079

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