Author(s)

Xinchun Zhang

Corresponding Author

Xinchun Zhang

ABSTRACT

This paper selects the quarterly data of manufacturing listed companies from 2007 to 2020 as the research sample, and uses the panel regression model to study. The results show that the level of financial asset allocation of enterprises is significantly positively correlated to the GDP, the growth rate of stock index and the growth rate of bond index, and the level of financial asset allocation is significantly negatively correlated with M2, which indicates that enterprises allocate financial assets because of motivation of capital arbitraging. Financial assets of enterprises do not play the role of liquidity management, on the contrary, become a means for managers to seek short-term and high returns.

KEYWORDS

manufacturing enterprises, financial assets, motivation of fund reserving, motivation of capital arbitraging