Abstract: A-share non-financial listed companies in Shanghai and Shenzhen Exchanges from 2011 to 2020 are taken as samples. Moderation of enterprise financialization is identified by building model, on the basis of which the relationship between moderation of enterprise financialization and enterprises’ total factor productivity is discussed, and innovation as a path variable is added to the model for intermediary effect analysis. The results show over-financialization inhibits the promotion of total factor productivity while under-financialization promotes it. The mechanism test shows moderation of enterprise financialization influences total factor productivity by innovation. Further research shows the influence is characterized by the heterogeneity of enterprises’ property rights, industries and scales. The conclusion shows there is an optimal level of enterprise financialization. Only by keeping the enterprise financialization at an appropriate level, can enterprises maximize their productivity and help the high-quality development of the real economy.

Key words: moderation of financialization, total factor productivity, high-quality development, innovation