Abstract Based on the financial data of Chinese A-share listed companies from 2007 to 2020, this paper examines the impact of financialization of real enterprises on debt financing. The results show that the financialization of entity enterprises has a “crowding-out effect” on debt financing, that is, the higher the level of financialization, the lower the total borrowing rate and total debt ratio. This conclusion is still valid after the robustness test such as endogenesis test of instrumental variable method and replacement measurement index. Heterogeneity test indicates that the negative impact of financialization of real enterprises on debt financing is more significant in the samples of currency contraction, state-owned enterprises, low market level and high industry competition. Mechanism analysis shows that the financialization of entity enterprises increases the capital risk and information risk of creditors by aggravating business risks and increasing earnings management, thus reducing the scale of corporate debt financing. The study has reference value for strengthening the supervision of the financialization of entity enterprises and optimizing corporate financing decisions by restraining financialization.
2024, Vol. 41 
