INVESTOR ATTENTION AND ENTERPRISE FINANCIALIZATION FROM THE PERSPECTIVE OF INSTITUTIONAL INVESTOR CORPORATE SITE VISITS

Abstract

This study investigates the impact of institutional investor site visits on enterprise financialization using Shenzhen Stock Exchange A-share listed companies’ data from 2013 to 2022. Findings reveal that such visits drive companies, especially those with high financing constraints, to reduce financial asset allocation. This reduction is facilitated through enhanced information disclosure and lowered financing costs. Notably, site visits effectively mitigate financialization in highly constrained private and high-tech enterprises. The study offers a theoretical guide for regulatory bodies, advocating for enterprises to prioritize core operations, minimize financial asset allocation and fortify financial services for the real economy.