Comprehensive Multi-Dimensional Analysis of Enterprise Financialization

This paper comprehensively discusses issues related to financialization, covering causes, impacts, and governance. Regarding causes, the macro level involves theoretical drivers, changes in the economic environment, policy reforms, and other factors. Due to variations in their economic environments, different nations (like the US and Germany) have different reasons for financialization; the micro level is related to changes in capital intermediation methods, corporate investment motivations, investor behavior, etc. The impact of financialization is extensive. At the macroeconomic level, it has changed the source and composition of profits, affected the economic growth model and macroeconomic balance, triggered commodity price fluctuations, aggravated economic inequality, and threatened financial stability; For micro-enterprises, although it helps to ease financing constraints, optimize resource allocation and diversify risks, it also leads to “de-materialization”, increased operating risks, and inhibited innovation. There is a diversity of impact between SOEs and non-SOEs. In terms of governance, enterprises should adjust incentives and optimize equity structures; at the macro level, the government can use tax policies to guide funds to the real economy and strengthen supervision of commodity futures markets to promote healthy economic development. Through multi-dimensional analysis, this paper seeks to thoroughly examine the causes, effects, and governance strategies of corporate financialization. It also offers a theoretical foundation and useful recommendations for policymakers and corporate managers to support the coordinated growth of the financial system and the real economy.