Corporate Financial Flexibility Construction Research In The Post-Acquisition

Financial risk management, which plays an important role in the acquisition risk management, is an extremely task. As the reflection of the management flexibility, the financial flexibility strengths the ability to adapt the risk, supplements the failure of the normal risk management and is an effective measure of risk management in post-acquisition.First, the paper discusses the financial risk characteristic in post-acquisition and points out the importance of the financial management. Then the paper researches the failures of the traditional financial management in post-acquisition. After the introduction of financial flexibility system, we propose the necessary of the financial flexibility in post-acquisition and propose the continued financial flexibility system through the quality and quantity research.The paper quantitatively studies the change of financial flexibility between the corporate pre-acquisition and post-acquisition. Through the research, we master the tendency of the change and clarify the reason of the change. We advise the key elements of the financial flexibility construction as the guide for the post-acquisition.After the theory research and empirical study, we conclude that the acquisition does impact the financial flexibility system. Thus, the corporate should actively construct the financial flexibility to practical solve the problems which come from the financial flexibility evaluation. In the process, the corporate should strengthen the change of traditional financial role, establish the management information system andset up the beneficial environments for the promote the financial flexibility construction.The paper's innovations:1. For the first time to propose the financial flexibility construction to deal with the post-acquisition risk.2. For the first time to establish the financial flexibility evaluation system, using the objective financial index to characterize the corporate financial flexibility system.3. Through the comparison analysis, to relatively master the level of corporate financial flexibility to establish the measure for the corporate financial flexibilityconstruction.4. Through the quality and quantity research, to guide the corporate financial flexibility construction and sufficiently utilize the quantity analysis in the corporate financial flexibility construction.