A U-Shaped Relationship between Real Financialization and Financial Risk : Evidence from a Single Threshold Model

The rapid growth of the global economy is now the dominant trend. This paper defines the financial industry norms, the motives and impacts of financial companies, introduces the current state of China's economic development and the current state of China's business economy, and deepens the understanding of economic trends. It also examines the impact of corporate finance on financial risk using a cohort threshold model. The results show that there is a U-shaped relationship between financial risk and real: financing helps reduce financial risk when the level of financing reaches 0.068%