Empirical Study Of Financial Flexibility、Financing Constraints And Inefficient Investment

As China’s economy is accelerating the process of development of the market, lagging behind the development of domestic capital markets, making companies have been greatly restricted, due to the scarcity of financial resources, resulting in not all companies can obtain funding needs by way of external financing in order to effectively carry out the investment activities, which makes our company due to the presence of a large number of financing difficulties led to inefficient investment in serious condition, the future is so uncertain market environment, how to deal with difficult external financing environment, an effective hedge against future financial risks and enhance their own reasonable investment opportunities ability is crucial for the survival and development of enterprises.2008 outbreak of the global financial crisis and the consequent credit crunch has made a large number of companies facing financial difficulties, with the coming of the European debt crisis also makes money financing difficulties rose to the level of national sovereignty, how to effectively respond to the market environment is not certainty, how to effectively deal with unexpected risks of future investment opportunities to get a reasonable grasp of the academic attention, and enterprises to cope with this uncertainty is the best way to arrange effective corporate financial flexibility policies in the face of financial constraints time, a reasonable risk-averse, effective investment opportunities, thereby reducing the efficiency of the company’s non-investment level, therefore, in the context of reality based on flexible financial perspective, research between Chinese listed company’s financial flexibility, financial constraints and inefficient investment relationship has important practical significance."Cash is king" has been in business operations management golden rule, especially in the context of the global financial crisis, credit crunch, financing difficulties and gradually spread, making a lot of companies because they can not obtain a valid external financing in a timely manner so that their missed investment opportunities, and even lead to the company’s bankruptcy, under imperfect market context, the existence of information asymmetry between investors and companies, and information asymmetry can lead to adverse selection and moral hazard, especially moral hazard will cause the company to generate revenue embezzlement embezzlement motivation to get it making investors for some assets and income can not be expected to achieve the financing of companies to increase financing threshold, coupled with the presence of credit rationing, so that these companies are willing to pay a higher interest rate, even if the cost of external financing can not be obtained, resulting in the presence of financing constraints. In order to cope with difficult market financing background, financial flexibility is crucial policy research firm, companies in the case of financial constraints, how flexible is expected to make reasonable flexibility to strengthen its cash levels and debt financing flexibility, resulting in meet the needs of future investment cash situation and can take into account to maximize the cash value of these companies to enhance the value of great significance, therefore, this paper is to study the relationship between China’s listed company’s financial flexibility, financial constraints and inefficient investment between, in order to improve the well-Corporate governance provides reference.At present, the academic research on the above problems mainly focus on the following aspects:(one) financing constraints and corporate investment cash flow sensitivity relationship; (two) the relationship between corporate financial flexibility and the performance of the company; (three) the relationship between ownership structure and non-efficiency investment level, there is little research based on the perspective of financial flexibility analysis of flexible, financial listing Corporation in China, the relationship between investment and financing constraints and inefficient, due to the financing constraint conditions of China’s enterprises are facing more serious, most enterprises because of not timely financing and loss of investment opportunities, therefore, in the background of financial constraints, financing constraints degree of different companies is different, whether between the non-efficiency of investment there is a certain correlation between the high and low and worth the academic circles study of corporate financial flexibility. Findings based on the previous studies, the present academic circle for the financing constraints of this variable has not yet formed a unified understanding, the key lies in the existence of differences metric of financing constraints, the cost of adoption the company internal and external financing difference to measure the company’s financing constraints degree, but in real life, the enterprise external financing costs usually higher than the internal, especially small and medium-sized enterprises, if that financing constraints is due to external financing cost caused by high, that as long as the enterprises to obtain a certain investment opportunity and investment opportunity income higher than the financing cost, the enterprises will obtain external financing, but the fact is not the case, this paper draws Tirole (2006) point of view, based on the perspective of credit rationing, using company assets and income as an important variable, through regression analysis to study the level of the enterprise financing constraints. In the financial flexibility, the domestic research for this index is still in its infancy, reference had Ai min this paper mainly (2011,2013) to measure method of the index, the cash flexibility measurement policy of enterprise financial flexibility, also consider the company’s debt financing capacity, the common measure of this one index. While the non-efficiency investment increasingly mature in the process of research in recent years, this paper also draws lessons from Richardson (2006) residual model to measure, at the same time, combined with the current capital market of China, a comprehensive analysis of flexible financial listing Corporation in China, relationship between financing constraints and non-efficiency of investment.In this paper, the use of normative and empirical research study of a combination of the above problems, first of all, mainly on the background and meaning, purpose, content, and explains the research methodology and research framework; then, a systematic review of domestic and foreign academia for the current financial constraints, financial flexibility, and research status of non-efficiency investment, in reading a lot of literature, the related literature for studies to sort out, and make a literature review; then, this article from financing constraints, financing constraints and financial flexibility, financial flexibility, financial constraints and inefficient investment three angles theoretical analysis, correlation analysis between variables, combined with theoretical analysis proposed hypothesis of this paper; based on the above assumptions, respectively, for the above five models were studied; Finally, these empirical analysis to draw conclusions and make policy recommendations, summarized articles and research prospects inadequate.In this paper, the Shanghai and Shenzhen 2008-2013 years manufacturing part of the listing Corporation as the research sample, through a large number of data collection and screening, to construct the index model, through descriptive analysis, correlation analysis and multiple regression analysis of variables, obtained the concrete the following conclusions:(1) when the listing Corporation financing constraints degree is higher, the company investment level is a significant phenomenon low and the lack of investment. The conclusion indicates that China’s listing Corporation in the face of high financing constraints, will generally produce underinvestment phenomenon, and this phenomenon is more prominent in the performance of listing Corporation in China; (2) when the financing constraints degree is higher, the higher listing Corporation financial flexibility, high financing constraint company, cash cash flow sensitivity is high. The listing Corporation’s cash holding policy has great influence to the financial flexibility level of listing Corporation, where the listing Corporation face financing constraints higher, listing Corporation tend to hold large amounts of cash reserves, against future financial risk and effectively respond to investment opportunities, so that the listing Corporation’s cash flow sensitivity is higher; (3) when the financing constraints level is higher, is negatively related to insufficient financial flexibility and non-efficiency investment. When the listing Corporation’s high degree of financing constraints, the listing Corporation is likely due to the financing constraint leads to inadequate investment fund at this time, if the listing Corporation’s financial flexibility level is higher, can effectively alleviate the above situation, enable enterprises to better grasp the investment opportunities, reducing investment and non-efficiency of listing Corporation investment insufficient level; (4) when the financing the low level of financial constraints, flexible for non-efficiency of investment, lack of investment has no significant impact. If the listing Corporation financing constraints degree is low, the external corporate acquisition financing ability, can easily obtain funds for investment, at this time, the financial flexibility level of listing Corporation listing Corporation whether excessive investment have a certain impact, the listing Corporation is not due to excessive investment company financial flexibility level leading to higher, the study shows, the listing Corporation in the low level of financing constraints, the level of the company’s financial flexibility for listing Corporation to invest over the impact is not significant; (5) when financial constraint level is higher, the financial flexibility, more conducive to the non-state-owned enterprises to ease the shortage of non-efficiency of investment.