Impact of non-financial listed companies' investment in wealth management products on industrial investment efficiency and R&D expenditure: A dual effect analysis

Jia Zhou

International Review of Financial Analysis, 2025, vol. 97, issue C

Abstract: This study explores the impact of Chinese A-share non-financial listed companies' investment in wealth management products on their industrial investment efficiency between 2012 and 2022. The results indicate that such investments notably reduce current industrial investment efficiency, contributing to underinvestment, yet paradoxically enhance industrial investment in the subsequent period. Additionally, the allocation of wealth management products crowds out industrial investments, resulting in inefficient capital allocation. Notably, the redirection of funds from industrial activities to wealth management also adversely affects the investment efficiency of real enterprises, particularly by displacing R&D expenditures.

Keywords: Industrial investment efficiency; Wealth management; Underinvestment; Crowding out effect (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1057521924007506
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:97:y:2025:i:c:s1057521924007506

DOI: 10.1016/j.irfa.2024.103818

Access Statistics for this article

International Review of Financial Analysis is currently edited by B.M. Lucey

More articles in International Review of Financial Analysis from Elsevier
Bibliographic data for series maintained by Catherine Liu ().