Abstract: In order to explore the profit-seeking motives of corporate financial asset allocation, this paper studies the impact of financial asset allocation on the business performance of entity companies from the perspective of financial asset heterogeneity. The paper finds that the allocation of financial assets can promote enterprises to improve their operating performance. Short-term financial asset allocation can promote business performance, while long-term financial asset allocation has a restraining effect on it. However, the promotion of short-term financial assets plays a dominant role between them. In the further analysis of the impact mechanism, this paper finds that short-term financial asset allocation promotes the improvement of corporate operating performance by alleviating financing constraints and increasing investment yield, while long-term financial asset allocation inhibits the improvement of corporate operating performance by squeezing out physical investment.