Financial Flexibility?dividend Policy And Investment Efficiency

GEM is an important part of China's capital and financial markets, as China's economic development provides a new engine, the most important purpose is to provide financing platform for the development and growth of SMEs and high-tech enterprises.Financial flexibility is adjusted to mobilize enterprise resources efficient, rational use of surplus cash and debt capacity reserves to cope with uncertain future events capability.China's capital market is not well developed,enterprises widespread financing constraints and Shareholders-operator agency problems,the former will have insufficient investment, the latter will enterprises have invested over.For now,the domestic studies mainly based on equity financing,and from flexible financial perspective to study the efficiency of investment is less.At the same dividend policy it is necessary to constitute Enterprise Oversight Mechanism,not only can ease the management- agency conflicts between shareholders also have the function of transmitting information,these companies and foreign investment theory will interact.Therefore,this paper attempts to study the relationship between financial flexibility, dividend policy and investment efficiency,and draw the relevant conclusions of the GEM companies to inefficient investment governance,and to study the economic impact on the enterprise to provide reference and inspiration,and further research and development of innovative.This article was first exploring the relationship between corporate financial flexibility and the efficiency of investment, and then explore the dividend payment for the GEM flexible corporate finance and investment efficiency. Firstly, The first article of the relevant literature and research to collate, in conjunction with their views on financial flexibility to select metrics based on the existing literature, that the flexible combination of cash flexibility and liabilities.Secondly, based on the theory of financial flexibility and dividend related theory, sort out the relationship and put forward among their own assumptions. Again, empirical test GTA database to collect data through GEM companies. Finally, based on statistical analysis software to verify the hypothesis of this paper, and the GEM with their own characteristics, to verify the reasons that results are analyzed and summarized, and make relevant policy recommendations.Through empirical and normative research method of combining, we draw the final conclusions of the study: GEM company's financial flexibility has a significant impact on the efficiency of investment.Financial flexibility will increase the degree of over-investment enterprise, but also achieve remission insufficient investment results. On the other hand, cash dividends between financial flexibility and investment efficiency play a regulatory role, that companies listed on GEM cash dividend payment will weaken the relations between the financial flexibility and efficiency of investment, a cash dividend for three consecutive years than non-consecutive have lighter inadequate levels of investment. This study of GEM listed companies to maintain a reasonable financial flexibility as well as how to control the inefficient investment has certain practical significance, but in order to analyze the dividend policy of GEM listed companies in our country where applicable.