Can expanding financial activities of manufacturing firms drive firm value growth?Threshold regression analysis based on panel data of listed manufacturing firms
This paper uses the stochastic optimal control theoretical model to introduce the asset allocation decisions of manufacturing enterprises into their value generation and fluctuation mechanism.The study analyzes the non-linear relationship between enterprise value and the dynamic allocation decision of industrial capital and financial investment in capital accumulation using data for listed manufacturing enterprises from 2003 to 2020.The theoretical analysis demonstrates the overall non-linear relationship between the scale of manufacturing firms'financial investment and their value growth in capital allocation.The empirical results show that a moderate increase in financial investment during the initial allocation of capital accumulation has a positive effect on the growth in enterprise value,and the intensity shows a changing trend from weak to strong.Using dynamic indicators to measure the behavior of expanding financial activities of enterprises and further testing shows that there is a double threshold effect between enterprise value and dynamic financial asset allocation.There is a moderate interval for expanding financial activities of enterprises,and its dynamic adjustment is related to the initial capital allocation and the correlation between industrial investment and financial investment.When the growth rate of financial investment is low in the slow growth stage,the expansion of financial investment can promote the growth of enterprise value,and can feed the industrial capital in redistribution;when the growth rate of financial investment exceeds the inflection point,the expansion of financial activities will have a negative effect on enterprise value;and when the growth rate of financial investment exceeds the second threshold,financial investment will have a promotional effect on the growth of enterprise value again.
financial investmententerprise valueinvestment portfoliofinancialization of non-financial corporationsshift from real to virtual economythreshold regression
万方数据
