A Research On The Influence Of Financial Flexibility Reserves On Investment Efficiency

With the acceleration of the global economic integration process,the economic boundaries between enterprises,between industries and between countries are gradually disappearing,the operating environment across the industry,region or borders is more and more complicated,what's more,it is full of ambiguity,uncertainty and discontinuity.Under these circumstances,enterprises need to maintain a certain degree of financial flexibility to deal with a series of crisis that may occur in the future.The existence of financial flexibility can effectively reduce the impact of the crisis and ease the financing constraints that the enterprise faced to ensure the normal investment spending,but financial flexibility can also exacerbate the agency problem between shareholders and management,the management is able to make the use of financial flexibility to conduct some inefficient investments.The investment activity is one of the important financial activities of the company,high-efficiency investment activities can make the enterprise remain competitiveness.Therefore,it is very important to find the optimal financial flexibility level by considering the positive and negative effects of financial flexibility on investment efficiency.Based on the importance of China's information technology industry in the development of national economy and the features such as high financial flexibility,high input,high risk,high yield and so on,this paper has a great theoretical and practical value by taking the listed companies of China's information technology industry as the research object to explore the impact of the financial flexibility reserves of the listed companies in this industry on the investment efficiency and the optimal financial flexibility level from the perspective of linear and non-linear.First,this paper introduces the research background,research significance and the main related concepts and so on to describe the characteristics of China's information technology industry and its importance to the development of national economy and why should the company reserve a modest financial flexibility and what is financial flexibility and investment efficiency,Secondly,this paper reviews the relevant literatures of financial flexibility,investment efficiency,financial flexibility and investment efficiency to elaborate the acquisition approaches and metering method of financial flexibility,influencing factors and measurement models of investment efficiency and summarize the current research status and existing problems of financial flexibility and investment efficiency.Thirdly,this paper analyzes the relevant theoretical basis and puts forward three hypotheses on the basis of theoretical analysis.Then,this paper carries on the empirical research design and result analysis,it takes the listed companies of information technology industry in 2012-2015 as the research samples to test the impact of financial flexibility reserves of listed companies on investment efficiency from the perspective of linear and non-linear by designing the multiple linear and nonlinear regression models.Finally,this paper shows conclusions and puts forward relevant suggestions and makes prospects for the future research.The conclusions of this paper are as follows: First,the listed company in China's information technology has a strong sense of financial flexibility,but there is a widespread phenomenon of inefficient investment and the main performance is underinvestment.Secondly,the financial flexibility reserves of listed companies in China's information technology industry can effectively reduce the impact of unfavorable events,alleviate the underinvestment caused by financing constraints and improve the investment efficiency of the company.Thirdly,the financial flexibility reserve of listed companies in China's information technology industry will aggravate the agency problem between shareholders and management,which will lead to excessive investment behavior and reduce the investment efficiency of the company.Finally,There is an optimal financial flexibility level in the listed companies of China's information technology industry,and the effect of financial flexibility reserves on investment efficiency has an interval effect,and the relationship between financial flexibility and investment efficiency is inverted U-type.The investment efficiency will increase with the increase of financial flexibility level,however,when the financial flexibility achieves the optimal level,the investment efficiency will reduce with the continued increase of financial flexibility level.