Academic Journal of Business & Management, 2024, 6(5); doi: 10.25236/AJBM.2024.060539.
Lining Zhang
School of Economics and Finance, Xi'an Jiaotong University, Xi'an, 710049, China
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.
Financial Background; Corporate Financialization; Financing Constraints
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.
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