Research On The Impact Of Financial Flexibility On Firm Value Under Financing Constraints

Under the condition of economic globalization brings opportunities spring up,it also makes market environment become more uncertain,the financial flexibility as a means of active control, it can reduce capital acquisition costs and ensure corporate sustainable management,grasp the investment opportunities timely, to realize the ultimate goal of firm value maximization.Now, research on the financial flexibility is still in the shell and the managers have not paid enough attention to financial flexibility. Cutting from the point of financing constraints, we attempt to research correlation between financial flexibility and firm value and whether there are differences under different financing constraints degree to provide reference for enterprises seeking optimal levels of financial flexibility. Financial flexibility level is game results between enterprise managers, shareholders, creditors, debtors and other stakeholders of different, it is influenced by macroeconomic environment, industry policy, marketcompetition,internal governance factors.The realization of the valuemaximization depends on the scientific and effective financial decision.First,based on importantconcept introduction included financing constraints,financial flexibility and firm value, and theoretical supportfinancing preference theory, free cash flow hypothesis, real options theory, carries on the elaboration to the influence mechanism of financial flexibility and firm value, choose 667 listed company’s annual report data from 2011 to 2013, build financial flexibility index and multiple linear regressions were established to test financial flexibility contribute tofirm value promotion and difference by financing constraintsdegrees.The research result shows thatthe financial flexibility of firm value has positive role in promoting, but marginal value would be decreased; cash flow, refinancing ability should maintain a moderate level, financing security could promote marginal value.According to financing constraint group regression results, we can conclude that financial flexibility effects more on financing constraint firms. For sake of exploring optimal levels of financial flexibility and easing financing constraints, we put forward policy suggestions from macro and micro levels such as playintermediary role of information, improvefinancial environment, refer to industry average levels of financial flexibility, rational dividend policy, rational use of hidden cash flow, increase product innovation,provide theoretical basis and practical guidance for managers and regulators.