The impact of financial agglomeration on corporate financialization: The moderating role of financial risk in Chinese listed manufacturing enterprises

This paper investigates the impact of financial agglomeration on corporate financialization using data from Chinese listed manufacturing enterprises between 2011 and 2020. By considering financial risk as a moderating variable, the study offers a comprehensive analysis of both the positive and potential negative effects of financial agglomeration on corporate financialization. We find that, first, financial agglomeration significantly promotes corporate financialization. Second, financial risk moderates the relationship between financial agglomeration and corporate financialization. Third, financial agglomeration has a more significant impact on corporate financialization for companies with higher financial risk and non-state-owned enterprises.