Financing Constraint,Financial Flexibility And Enterprise Performance

The development of enterprises requires the support of technology and capital.Enterprises to carry out research and development and technological innovation,by improving production efficiency,reduce production costs and improve product quality,so that products in the market with competitiveness,and then access to revenue and promote better development of enterprises.The enterprise R&D,production and sales process,the need for capital investment can be achieved,so the enterprise capital financial management operation in the enterprise development is particularly important.In particular,enterprises in the face of complex economic environment,facing financial constraints in the case,to maintain a good financial flexibility is directly related to the future development of enterprises prospects.Financial flexibility refers to the ability of enterprises to use financial resources in the face of uncertain events(Zeng,2011).Financial flexibility can help companies capture favorable investment opportunities and improve business performance(Bulan,2008).Financial flexibility plays an important role in investment and financing decision-making,which can affect the grasp of favorable investment opportunities and decide the strategic choice when faced with unfavorable environment,which determines the level of enterprise performance.Financial flexibility to a certain extent,can be understood as the enterprise can access to the financing channels and financing structure,financial flexibility by the constraints of corporate finance constraints,therefore,financing constraints to a certain extent,also affect business performance.This paper analyzes the influence of the first two on the performance of the firm,the influence degree and the effect of the financing constraint on the financial flexibility from the perspective of studying the influence of financing constraints and financial flexibility on the performance of the firm.Under the framework of the above theory,the paper summarizes the enlightenment of the financial operation of the enterprise and,in the light of the increasing trend of the uncertainties of global economic development and the difficulty of financing,the content system of financial flexibility to the mechanism of corporate performance is expanded,The diversification of the understanding of performance factors,while helping business decision-makers from the financial flexibility and financing constraints to consider the issue,to promote the company to maintain good development.The first chapter is the introduction,introduces the background and significance of this paper,the research content,the research method and the possible innovation and the deficiency.The second chapter is the literature review and theoretical analysis.This chapter first explains the concept and explains the concept of financial flexibility,and sums up the mechanism of financing constraints and financial flexibility on corporate performance.From the aspects of financing constraints,financial flexibility and corporate performance,the relationship between the foreign and domestic literature review.The third chapter is the empirical analysis.Based on the analysis of the previous chapters,this chapter establishes the measurement model,selects and collates the data of the listed companies in Shanghai and Shenzhen from 2007 to 2015,verifies the financial flexibility and the impact of corporate performance,And then the threshold model is expanded to verify the non-linear relationship.Finally,the specific coefficients are further validated by using the threshold model(Threshold models,Hansen,2000).The fourth chapter is the conclusion and suggestion.Based on the above theoretical analysis and empirical research,this chapter summarizes the key points of financial flexible management in the light of the situation of domestic enterprises in the current situation.