Monetary Policy,Cash-cash Flow Sensitivity And Financial Flexibility

Since twenty-first Century,the "Financial Crisis" and "Recession" has already appeared more and more frequently in various news media reports,a large number of enterprises have been closed down because they did not do a good job of defensive measures.This paper reviewed the study theory related to the cash-cash flow sensitivity and empirical.This paper attempts to explore whether there is a difference in the cash-cash flow sensitivity under tight monetary policy,and the financial flexibility will play a role,as a combination of corporate finance constraints.The empirical study found that in the period of tightening monetary policy,the external financing environment will be worse,the management of liquidity will be more cautious and positive for defensive motivation,increase the company’s cash-cash flow sensitivity;The higher the degree of financing constraints,the higher the cash-cash flow sensitivity of the company than the lower the degree of financing constraints;in the period of monetary policy tightening,companies can enhance the liquidity of flexible financial management,cash-cash flow sensitivity increases with high financial flexibility and high cash flexibility;further studies find that companies with different property rights will be managed by different types of flexible convection in different periods.This combination of passive monetary policy leads to the financing constraints and the sensitivity of the issue of company’s cash-cash flow through financial flexible active cash management.The conclusions of this paper have some guiding significance for the implementation of more effective macro-control policies and how to actively carry out financial management in the face of changes in monetary policy for companies.