Research On The Impact Of Financial Resilience On Investment Efficiency Based On Different Life Cycles

Enterprise investment is an important content of corporate financial behavior. The success or failure of the enterprise investment decision and the efficiency of investment is not only related to the survival and development of the enterprises, but also affect the resource allocation efficiency of the whole society. Currently, our country is in the period of the economic transition and the rate of economic growth gradually slows down. Although the global economic situation has improved in recent years, downward pressure on the domestic economy is still great, so competitive pressure in the various walks of life is also very fierce. In such market environment, how to ensure own investment efficiency is worth considering. In this paper, in order to observe the influence of the financial flexibility level on the investment efficiency in the different development stages, the life cycle theory is introduced, which will provide the basis for the investment decision.First of all, this paper selects the manufacturing industry data of the 432 companies in Shanghai A shares listed in 2011-2014 as an example, then by using the Dickinson cash flow combination method and according to the characteristics, the lifecycle of the sample enterprises can be divided into the growth period, mature period and decline period; After that, for the sake of measuring the investment efficiency of enterprises, Richardson investment expectation model is constructed. According to it, the investment efficiency of enterprises are divided into the under and over investment; Secondary, selecting 12 financial indicators to construct the financial flexibility index system, and by means of the principal component analysis to calculate the financial flexibility index, the financial flexibility level of the sample enterprises can be measured. In summary, the sample enterprises can be divided into three categories:low elastic level, general elastic level and high elastic level; Finally, the influence situation of financial flexibility on the investment efficiency of different life cycle enterprises is studied by constructing multiple linear regression models.This paper is a follow-up study about financial flexibility. Through the empirical research, the conclusions are derived as follows:(1) There are significant differences in the financial flexibility level of enterprises in different life cycle;(2) Financial flexibility is the impact factor of the investment efficiency, and they have an inverted U type relationship, namely with the increase of the enterprise financial flexibility, the investment efficiency first gradually increases, however, when over an extreme point, it begins to decrease;(3) The quoted companies in the growth stage and mature stage in the manufacturing industry, the influence function of their financial flexibility on the investment efficiency are the most significant, yet the effect of the recession is not obvious.