Abstract Based on the data of listed companies in China from 2010 to 2022, this paper studies the impact and mechanism of independent directors of industry experts on the financialization of real enterprises. The findings indicate that industry expert independent directors can reduce financialization, thereby curbing the “ shift from the real economy to the virtual economy ” in real enterprises. The mechanisms through which they achieve this include guiding main business investment and alleviating agency problems. The heterogeneity analysis reveals that the effectiveness of independent directors with industry expertise is more pronounced in firms with higher business environment uncertainty, less experienced chairpersons and overconfident executives. In contrast, a financial background is not conducive to curbing the financialization of real enterprises. In addition, independent directors with industry expertise primarily prompt firms to reduce their allocation to short-term financial assets and mitigate the negative impact of corporate financialization on total factor productivity. This study reveals the underlying logic of the relationship between independent directors with industry expertise and the financialization of real enterprises. It is of great significance for real enterprises to effectively leverage the role of the independent director system and to guard against the “ shift from the real economy to the virtual economy ”.
YAN Jiahao,SU Kun,FAN Yixuan. Can Industry Expert Independent Directors Curb the Shift from the Real Economy to the Virtual Economy in Real Enterprises?. Economic Survey, 2025, 42(2): 0134.
2025, Vol. 42 
