“…Thus, this demonstrates that the excessive engagement of non-financial capital enterprises in financial business development has certain negative effects on individuals, enterprises, and society, although the development of corporate financialization promotes the rapid development of enterprises to a certain extent; moreover, to curb corporate financialization, it is necessary to explore the reasons behind the influence of corporate financialization. The literature on the causes of corporate financialization mainly covers shareholder value creation pressures (Modell & Yang, 2018), technological and ideological changes (Davis & Kim, 2015), trust structures (Harrington, 2017), employee stock ownership plans (Feng et al, 2022a), business diversification (Feng et al, 2022b), multiple blockholders (Jiang et al, 2022), and increases in the cash holdings of non-financial firms, and it provides support for the possibilities that traditional non-financial firms are increasingly engaging in for-profit lending (Davis, 2018). While most of these influences have been studied only in terms of corporate behavior and social relations, few studies have explored how institutional reforms and related policy implementations can influence corporate financialization.…”