Research On Financial Flexibility And Corporate Value Of Chinese Listed Companies In Growth Enterprise Market

With the development of economic globalization, technological progress and information technology, the business environment faced by enterprises is full of great discontinuity and uncertainty. Chinese enterprises will face more uncertainty and risk.On the one hand, Chinese enterprises have to bear market restructuring, social change and government intervention and so on, so the business environment is changing all the time. On the other hand, with the promotion of a variety of emerging industries,enterprises will face more investment opportunities. Due to the intertwined effects of the reality of information asymmetry and transaction cost, especially the slow development of Chinese capital market, internal and external financing cost of enterprises exist larger differences. in order to respond to the adverse impact caused by environmental changes and seize potential investment opportunities, to achieve the goal of the maximum value of enterprise, it is very important about how to timely raise funds. The scientific and effective financial policy is particularly important. In today’s fierce market competition, the uncertainty of the growth and innovation lead to continuing change of the GEM company’s financial condition and demand, The kind of change and uncertainty will come into bring the multiple influences to the GEM Listing enterprise, so the reserve of financial flexibility should be payed more and more attention.This paper on the basis of the literature review, describes the relevant basic theory, then analyzes the current situation of financial flexibility of the Chinese GEM listed company, puts forward the hypothesis of this paper, and establishes the regression model of empirical research. This paper selects 2012-2014 years China’s GEM listed companies as research samples, and discusses the contents are as follows:(1) This paper research on the relationship between financial flexibility and enterprise value,namely Whether the financial flexibility reserve is helpful to enhance the enterprise value.(2) When the different enterprises have the different stages of growth and the different ability in the investment and innovation, whether the difference offinancial flexibility to enhance corporate value.(3) Because of Chinese special market environment, different of the system environment is an important factor to affect the development of enterprises. Therefore, according to the different market environment of different enterprises, empirical study of the effect of differences of financial flexibility value.The study show that a majority of GEM Listing Corporations reserve the low level of financial flexibility, so enterprises should pay more attention on financial flexibility. There is a significantly positive correlation between financial flexibility and enterprise value, in other words, financial flexibility can enhance corporate value.The study discover that enterprises are in the stage of rapid growth or have strong innovation ability, financial flexibility will make the goal of maximizing value for enterprises. This paper find that the level of market backward area, financial flexibility of reserve will have s higher value. At the end of this paper, some related suggestions are put forward.