Common Institutional Ownership and the Financialization of Non-Financial Enterprises: The Moderating Role of Digital Financial Risk.

This study examines how common institutional ownership influences the financialization of non-financial enterprises in China, with a specific focus on the moderating role of digital financial risk. Using a comprehensive dataset of 6,250 firm-year observations from Chinese private banks between 2013 and 2023, we apply a fixed-effects panel regression model to analyze this relationship. Our findings reveal that common institutional ownership significantly enhances the financialization level of non-financial enterprises, particularly when digital financial risk is moderate. However, this positive relationship weakens when digital financial risk reaches high levels. Thus, these results contribute to the institutional ownership literature by highlighting the complex interplay between ownership structures, financialization strategies, and the emerging digital financial environment in China's banking sector. Our study provides important implications for corporate governance frameworks and regulatory policies in emerging financial markets.