Professional thesis
Open access

Research on Financial Issues of Chinese Enterprises in the Food Industry: An Asset Allocation Perspective

ContributorsTong, Bin
Number of pages48
Imprimatur date2021
Defense date2021

In the context of investment diversification and the decline in industrial investment, starting from the premise that "populous countries are more in need of stable food industry", the financialization of Chinese food-industry companies is studied in view of the asset allocation in this work.

Based on data from financial statements of listed companies in the Chinese food industry from 2007 to 2019, research methods are adopted such as the descriptive statistics, the fixed effect model, t-test, the Analysis of Variance (ANOVA), the mean-variance model, and the rolling portfolio backtesting, in order to conduct empirical studies on the degree of financialization, to explore the motivations for financialization, and the asset portfolios and financialization strategies of companies in the food industry.

The findings show that Chinese food industry companies feature an upward trend in the level of financialization and a downward trend in the proportion of operating assets. The internal motivation for the rising financialization is not the substitution effect but the surplus effect, which has improved the profitability of total assets. There exists an optimal asset portfolio in the food industry, but the existing asset allocations of state-owned, private and family companies have not reached the overall level of the industry. Thus, it is recommended to optimize their asset allocations by applying the minimum-risk portfolio. Thereinto, with the investment ceilings for the operating asset and the financial asset, state- owned food companies would adopt a financialization strategy of the long-term equity investment tilt, private food-industry companies could adopt prudent financialization strategies, and family food-industry companies might consider changing relatively conservative low-level financialization investment habits to adopt relatively active financialization strategies.

This article has certain academic and practical significance for supplementing the financialization theory and improving the asset allocations of Chinese companies in the food industry.

  • Food Industry Company
  • Financialization
  • Asset Allocation
  • Optimal Asset Portfolio
Citation (ISO format)
TONG, Bin. Research on Financial Issues of Chinese Enterprises in the Food Industry: An Asset Allocation Perspective. 2021.
Main files (1)
  • PID : unige:177917
  • Thesis number : 0038

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