The Impact of Capital Market Opening on the Corporates’ Financialization

Huiyuan Zheng and Zhao Zhang ()
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Huiyuan Zheng: University of Southern California
Zhao Zhang: Xi’an Jiaotong University

A chapter in Proceedings of the 2022 3rd International Conference on Big Data Economy and Information Management (BDEIM 2022), 2023, pp 128-138 from Springer

Abstract: Abstract This paper studies the influence of the opening degree of the stock market represented by the stock market on the degree of financialization of corporates. Taking the Shanghai-Hong Kong Stock Connect as the experimental object, we find that the opening of the capital market can significantly improve the degree of financialization of corporates. After heterogeneity test and robustness test, the results are still valid. With the improvement of the degree of capital market opening and the difference of time, the effect of improving the financialization of corporates will be more obvious. In addition, with the active international trade, the influence of capital market on the financialization of different industries also changes with the change of influencing factors. The research of this paper proves that the development mode of “capital market opening intensifies corporate financialization” is still reasonable. This study also adds to the evaluation of the policy of capital market opening and is related to the research literature on the economic benefits of capital market opening.

Keywords: Capital market; financialization; economic development; international trade; real economy (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-124-1_16

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DOI: 10.2991/978-94-6463-124-1_16

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