Work

Understanding the effects on corporate performance of investments in wealth management products

Year: 2025

Type: article

Abstract: We evaluate how purchases of wealth management products (WMPs) influence the performance of Chinese nonfinancial listed companies. Our main finding is that purchasing WMPs enhances firm performance, but the relation shows an inverted U‐shape: When WMP investment exceeds 62.57% of total assets, its positive effects diminish and ultimately harm performance. Heterogeneity analysis reveals that the performance gains are concentrated among non‐state‐owned enterprises (non‐SOEs), whereas state‐owned enterprises (SOEs) experience no significant benefits or even negative effects. Furthermore, the positive impact of WMPs is more pronounced in firms with higher leverage, abundant cash holdings, or lower top‐shareholder concentration.

Source: The Journal of Financial Research

DOI: 10.1111/jfir.70013

Authors: Shao‐Chieh Hsueh, Paresh Kumar Narayan, Shuoxun Zhang

Institutions: Xiamen University of Technology, Monash University, Sichuan University

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W4413604722

FWCI: 2.7

Cites: 49

Cited by: 1

Related to: 10