1,845
Views
3
CrossRef citations to date
0
Altmetric
Research Article

How does corporate financialization affect operational risk? Evidence from Chinese listed companies

, ORCID Icon, &
Pages 1-21 | Received 18 Jul 2022, Accepted 02 Jan 2023, Published online: 13 Jan 2023

References

  • Aalbers, M. B. (2019). Financialization. In D. Richardson, C. Noel, M. F. Goodchild, A. Kobayashi, W. Liu, & R. A. Marston (Eds.), The international encyclopedia of geography: People, the earth, environment, and technology. (2nd ed.). Wiley.
  • Acharya, V. V., Amihud, Y., & Litov, L. (2011). Creditor rights and corporate risk-taking. Journal of Financial Economics, 102(1), 150–166. https://doi.org/10.1016/j.jfineco.2011.04.001
  • Akkemik, K. A., & Özen, Ş. (2014). Macroeconomic and institutional determinants of financialisation of non-financial firms: Case study of Turkey. Socio-Economic Review, 12(1), 71–98. https://doi.org/10.1093/ser/mwt006
  • Baggs, J., & De Bettignies, J. E. (2007). Product market competition and agency Costs. Journal of Industrial Economics, 55(2), 289–323. https://doi.org/10.1111/j.1467-6451.2007.00312.x
  • Basel Committee on Banking Supervision. (2001). Working paper on the regulatory treatment of operational risk. Bank of Interna-tional Settlements, Basel, Switzerland. https://www.bis.org/publ/bcbs_wp8.pdf
  • Bonet, I., Peña, A., Lochmuller, C., Patiño, H. A., Chiclana, F., & Góngora, M. (2021). Applying fuzzy scenarios for the measurement of operational risk. Applied Soft Computing, 112, 107785. https://doi.org/10.1016/j.asoc.2021.107785
  • Chen, S. S., & Wang, Y. (2012). Financial constraints and share repurchases. Journal of Financial Economics, 105(2), 311–331. https://doi.org/10.1016/j.jfineco.2012.03.003
  • Crouchy, M. (2001). Risk management. McGraw Hill.
  • Davis, L. E. (2016). Identifying the “financialization” of the nonfinancial corporation in the US economy: A decomposition of firm-level balance sheets. Journal of Post Keynesian Economics, 39(1), 115–141. https://doi.org/10.1080/01603477.2015.1116370
  • Davis, L. E. (2018). Financialization and the non‐financial corporation: An investigation of firm‐level investment behavior in the United States. Metroeconomica, 69(1), 270–307. https://doi.org/10.1111/meca.12179
  • Demir, F. (2009). Financial liberalization, private investment and portfolio choice: Financialization of real sectors in emerging markets. Journal of Development Economics, 88(2), 314–324. https://doi.org/10.1016/j.jdeveco.2008.04.002
  • Du, Y., Zhang, H., & Chen, J. (2017). The impact of financialization on future development of real enterprises’ core business: Promotion or Inhibition. China’s Industrial Economy, 12, 113–131. In Chinese)
  • Duchin, R., Gilbert, T., Harford, J., & Hrdlicka, C. (2017). Precautionary savings with risky assets: When cash is not cash. The Journal of Finance, 65(3), 955–992. https://doi.org/10.1111/jofi.12490
  • Epstein, G. A. (2005). Financialization and the world economy. Edward Elgar Publishing.
  • El Arif, F. Z., & Hinti, S. (2014). Methods of quantifying operational risk in Banks: Theoretical approaches. American Journal of Engineering Research, 3(3), 283–244. https://www.researchgate.net/publication/268279783_Methods_of_quantifying_operational_risk_in_Banks_Theoretical_approaches
  • Griffith, R. (2001). Product market competition, efficiency and agency costs: An empirical analysis. IFS Working papers
  • Han, S., & Qiu, J. (2007). Corporate precautionary cash holdings. Journal of Corporate Finance, 13(1), 43–57. https://doi.org/10.1016/j.jcorpfin.2006.05.002
  • Huang, S., & Peyer, U. (2012). Corporate governance and product market competition. Working paper, INSEAD.
  • Kaplan, S. N., & Zingales, L. (1997). Do investment-cash flow sensitivities provide useful measures of financing constraints? The Quarterly Journal of Economics, 112(1), 169–215. https://doi.org/10.1162/003355397555163
  • Keller, B., & Bayraksan, G. (2012). Case—Quantifying operational risk in financial institutions. INFORMS Transactions on Education, 12(2), 106–113. https://doi.org/10.1287/ited.1110.0075cs
  • Klinge, T. J., Fernandez, R., & Aalbers, M. B. (2021). Whither corporate financialization? A literature review. Geography Compass, 15(9), e12588. https://doi.org/10.1111/gec3.12588
  • Krippner, G. R. (2005). The financialization of the American economy. Socio-Economic Review, 3(2), 173–208. https://doi.org/10.1093/SER/mwi008
  • Li, K., Yue, H., & Zhao, L. (2009). Ownership institutions and capital structure: Evidence from China. Journal of Comparative Economics, 37(3), 471–490. https://doi.org/10.1016/j.jce.2009.07.001
  • Li, T., Li, X., & Albitar, K, School of Economics and Statistics, Guangzhou University, Guangzhou, China (2021). Threshold effects of financialization on enterprise R&D innovation: A comparison research on heterogeneity. Quantitative Finance and Economics, 5(3), 496–515. https://www.aimspress.com/aimspress-data/qfe/2021/3/PDF/QFE-05-03-022.pdf https://doi.org/10.3934/QFE.2021022
  • Luo, Y., & Zhu, F. (2014). Financialization of the economy and income inequality in China. Economic and Political Studies, 2(2), 46–66. https://doi.org/10.1080/20954816.2014.11673844
  • Mitra, S., Karathanasopoulos, A., Sermpinis, G., Dunis, C., & Hood, J. (2015). Operational risk: Emerging markets, sectors and measurement. European Journal of Operational Research, 241(1), 122–132. 15 https://doi.org/10.1016/j.ejor.2014.08.021
  • Moosa, I. A. (2007). Operational risk: a survey. Financial Markets, Institutions & Instruments, 16(4), 167–200. https://doi.org/10.1111/j.1468-0416.2007.00123.x
  • Opler, T., Pinkowitz, L., Stulz, R., & Williamson, J. (1999). The determinants and implications of corporate cash holdings. Journal of Financial Economics, 52(1), 3–46. https://doi.org/10.1016/S0304-405X(99)00003-3
  • Orhangazi, Ö. (2008). Financialisation and capital accumulation in the non-financial corporate Sector: A theoretical and empirical investigation on the US economy: 1973–2003. Cambridge Journal of Economics, 32(6), 863–886. https://doi.org/10.1093/cje/ben009
  • Ortiz, J. P. D. (2014). Financialization: The AIDS of economic system. Ensayos de Economia, 23(44), 55–73. http://www.revistas.unal.edu.co/index.php/ede/article/view/46419/47936
  • Qi, Y., & Zhang, R. (2018). The empirical research on the impact of the financial asset allocation on firm value. Finance & Trade Economics, 39(5), 38–52. In Chinese
  • Richardson, S. (2006). Over-investment of free cash flow. Review of Accounting Studies, 11(2–3), 159–189. https://doi.org/10.1007/s11142-006-9012-1
  • Stockhammer, E. (2010). Financialization and the global economy. Political Economy Research Institute Working Paper, 242(40), 1–17. https://doi.org/10.1371/journal.pone.0012414
  • Stockhammer, E. (2013). Financialization, income distribution and the crisis. Investigación Económica, 71(279), 39–70. https://doi.org/10.1057/9780230303942_11
  • Stulz, R. M. (1996). Rethinking risk management. Journal of Applied Corporate Finance, 9(3), 8–25. https://doi.org/10.1111/j.1745-6622.1996.tb00295.x
  • Tori, D., & Onaran, Ö. (2018). The effects of financialization on investment: Evidence from firm-level data for the UK. Cambridge Journal of Economics, 42(5), 1393–1416. https://doi.org/10.1093/cje/bex085
  • Wang, H., Cao, Y., & Yang, Z. (2018). Does the financialization of non-financial enterprises promote or inhibit corporate innovation: An empirical study based on Chinese listed manufacturing companies. Nankai Business Review, 20(1), 155–166. (In Chinese).
  • Wang, R., Wang, H., & Chen, Y. (2021). Does financialization of non-financial corporations promote or prohibit corporate risk-taking? Emerging Markets Finance and Trade, 58(7), 1913–1924. https://doi.org/10.1080/1540496X.2021.1944853
  • Wang, Z., Wang, Z., & Li, J. (2017). Business risks and working fund financing decisions. China Journal Accounting Studies, 5, 60–67. 97. (In Chinese).
  • Xu, J., & Zeng, X. (2010). The CEOs compensations contract and fair value accounting in China. China Journal Accounting Studies, 3, 12–19. (In Chinese).
  • Xu, S., & Guo, L. (2021). Financialization and corporate performance in China: Promotion or inhibition? Abacus, https://doi.org/10.1111/abac.12213
  • Xu, Y., Pinedo, M., & Xue, M. (2017). Operational risk in financial services: A review and new research opportunities. Production and Operations Management, 26(3), 426–445. https://doi.org/10.1111/poms.12652
  • Xu, Y., Zhu, L., & Pinedo, M. (2020). Operational risk management: A stochastic control framework with preventive and corrective controls. Operations Research, 68(6), 1804–1825. https://doi.org/10.1287/opre.2019.1960
  • Ye, X., Cao, Z., & Xiang, H. (2020). How does corporate financial asset allocation affect the risk of stock price collapse? -An inspection of mechanism from the perspective of term structure heterogeneity. Chinese Review of Financial Studies, 12(04), 67–83. 125. (In Chinese)
  • Zhai, G., Jian, M., & Duan, Q. (2021). Financing of manufacturing enterprise and real capital investment - Empirical analysis based on manufacturing list companies from 2009 to 2018. Economic Perspectives, 1, 85–104. (In Chinese).
  • Zhang, C., & Zheng, N. (2020). What drives the financialization of China’s real sector: Monetary expansion, profit-seeking capital or risk aversion? Journal of Financial Research, 9, 1–19. In Chinese
  • Zhao, Y., & Su, K. (2022). Economic policy uncertainty and corporate financialization: Evidence from China. International Review of Financial Analysis, 82, 102182. https://doi.org/10.1016/j.irfa.2022.102182
  • Zhong, Q., & Lu, Z. (2018). Can capital market opening improve the information content of stock price? Empirical test based on the effect of Shanghai-Hong Kong Stock Connect. Management World, 34(1), 169–179. (In Chinese).