Mingxuan He

Mingxuan He

31 May, 2024

Enterprise financialization operation, Enterprise value, Risks and precautions.

Enterprise financialization specifically refers to the use of financial instruments such as debt and equity by enterprises to facilitate their own fundraising, improve their financing capabilities, and thereby ensure the liquidity of enterprise funds, helping the long-term development of enterprises. This article studies the financialization of enterprises, analyzes its specific impact on improving enterprise value, and emphasizes that financialization can achieve financial leverage effect, obtain more investment opportunities, and create conditions for enhancing enterprise market competitiveness. However, at the same time, there are also certain risks associated with enterprise financialization, such as increased interest burden and dilution of equity. Therefore, in the process of enterprise financialization, enterprises need to allocate financial instruments such as debt and equity reasonably according to their own situation, in order to achieve maximum value enhancement. 

© 2024, the Authors. Published by ISCCAC

This is an open access article distributed under the CC BY-NC license