Financing Flexibility And The Over-investment Of Corporate

After the reform and open policy, our country economy obtained the high speed development, and the investment plays an important role in this time. But the efficiency of investment problem is also attracting the attention of people from all walks of life. Because the capital market in our country is not developing perfectly, inadequate investment and excessive investment are very common. Therefore, we must research the efficiency of investment to improve investment efficiency for the enterprise to find the right measures and means. In this thesis, in the term of product market competition, we study the financial flexibility difference of the impact of excessive investment, for our country about strengthening the market competition mechanism, and provide the reasonable resource allocation efficiency to alleviate the problem of excessive investment of listed companies has the theoretical and practical significance.This thesis includes six parts:the first part is introduction, mainly introduces the research background of this article and research significance, the research goal and the research content and innovation in this thesis, at the same time elaborated in this thesis, research methods, and the narrative structure of this article. The second part is the literature review, mainly for the domestic and foreign about the financial flexibility, product market competition and overinvestment to review and summarize the related literature and literature review, which inspired this thesis on the basis of existing research results of further study. The third part is the theory analysis and research design, through analyzing the phenomenon and the theory of concrete, pick up the elements from the phenomenon of study sample, and then put forward the research hypothesis. The forth part is to deal with the sample data with variable definition, and then design the model. The fifth part is to carry on descriptive statistics analysis the characteristic of the selected samples, and then through the empirical analysis of the above variables and model on the basis of the specific analysis of test results the existence of the products under the market competition, our country listed company financial flexibility to excessive investment, the influence of the robustness test.The sixth part is the summary, in view of the empirical research and analysis the research conclusion, and puts forward related measures and suggestions, highlight of this article writing sense; after summarizing possible defects and research prospects in this thesis.In this thesis, through theoretical analysis and empirical test results, excessive investment is significantly related to the financial flexibility and it shows that financial flexibility can intensify principal-agent problems, and deteriorate investment excesses. Compared with the state-owned enterprises, the excessive deterioration degree of financial flexibility to invest in state-owned enterprises is bigger. At the same time, the greater the degree of product market competition, that is, in the product market competition is intense, financial flexibility have less effect on the enterprise excessive investment. In the product market competition more intense industry at the same time, the financial flexibility to non-state enterprises over-investment affect smaller than state-owned enterprises.Main innovation point of this article are:first, the article through the financial flexibility-exacerbate agency problem-leads to excessive investment the main line, reveals the financial flexible internal mechanism of the impact of excessive investment. This article directly testing the financial flexibility to the enterprise the influence of excessive investment, expand the study of the influence factors of financial flexibility. Second, pioneering competition of product market, financial flexibility and excessive investment in the same research scope, not only enrich the product market competition and the economic consequences of flexible financial research, and from a new Angle of research provide evidence to support the influence factors of excessive investment, more to solve the problem of excessive investment policy guidance advice.