This paper takes the listed companies of China's Shanghai and Shenzhen A-shares from 2008 to 2019 as the sample and uses methods such as two-stage least squares regression to empirically test the relationship between executive financial background, financing constraints, and corporate financialization. The research conclusions are as follows: (1) The financial background of corporate executives has a significant positive impact on corporate financialization, and the conclusion remains valid after controlling for endogeneity. (2) The mechanism test shows that an increased proportion of executives with a financial background can alleviate the financing constraints of enterprises, thereby enhancing the promoting effect of executive financial background on corporate financialization. This paper studies the influencing factors of corporate financialization from the perspective of executives, enriches the related research on executive financial background and corporate financialization, and provides a new angle for managers and regulatory departments to consider financial risks, as well as a new direction for investors to correctly recognize the value of enterprises.

Lining Zhang. Executive Financial Background, Financing Constraints, and Corporate Financialization. Academic Journal of Business & Management (2024) Vol. 6, Issue 5: 288-294. https://doi.org/10.25236/AJBM.2024.060539.

[1] Chen Ximing, Huang Wei, Sun Yan. (2021).Financial Market Risk, Corporate Financialization, and Corporate Fixed Asset Investment Efficiency Business Research, 2021(03): 65-72.

[2] Shen Lu, Chen Zuying. (2021).Directors and Officers Liability Insurance and Corporate Financialization: Inhibitory or Aggravating? Wuhan Finance, 2021(03): 66-71.

[3] Dong Xiaohong, Sun Wenxiang. (2021).Corporate Financialization, Internal Control, and Audit Quality. Audit and Economic Research, 2021, 36(01): 26-36.

[4] Gu, L., Guo, J., & Wang, H. (2020). Corporate Social Responsibility, Financing Constraints, and Corporate Financialization. Financial Research, 2020(02), 109-127.

[5] He, X., Zhu, R., & Huang, Y. (2020). Study on the Degree of Corporate Financialization, Inducing Factors, and Economic Consequences. East China Economic Management, 2020, 34(01), 76-85.

[6] Du, Y., Xie, J., & Chen, J. (2019). CEO Financial Background and Corporate Financialization. China Industrial Economy, 2019(05), 136-154.

[7] Dai, Z., & Pan, S. (2019). Executive Financial Experience and Corporate Financialization. World Economic Digest, 2019(02), 76-99.

[8] Du, Y., Zhang, H., & Chen, J. (2017). The Impact of Financialization on the Future Development of Real Enterprises: Promotion or Inhibition? China Industrial Economy, 2017(12), 113-131.

[9] Jin, S., & He, S. (2017). Corporate Financialization, Executive Stock Incentives, and Research and Development Investment. Science and Technology Progress and Countermeasures, 2017, 34(22), 78-84.

[10] Deng, C., Zhang, M., & Tang, Y. (2017). Analysis of Factors Influencing the Financialization of Non-Financial Enterprises in China. Finance Theory and Practice, 2017, 38(02), 2-8.