Research On The Impact Of Financial Flexibility On Corporate Value Under Different Degree Of Financial Development

The short-term performance of enterprises is greatly affected by the economic background of the new normal.With the upgrading of the domestic industry and the aggravating of the structural adjustment,major changes have taken place in the market environment faced by firms,and the competition between the enterprises is more intense.In order to adapt to the uncertain environment and to ensure sustainable development of enterprises in the fierce competition environment,enterprises need to maintain the appropriate investment ability and need to maintain appropriate financial flexibility in making the capital structure decision.The global financial crisis in 2008 make people to realize the importance of the financial flexibility.The enterprises that have flexible financial can better deal with the crisis,seize the valuable investment opportunities and increase the firm value.At the same time,China has a vast territory and there is a significant difference of the degree of financial development in different regions.The perfecting financial institutions and the effective financial market improve the efficiency of resource allocation,improve the financing environment of the enterprises,and change management effect of the enterprise.Therefore,the article joined the factor--different degree of financial development.In addition,because of Chinese special property,the impact of financial flexibility on corporate value of the state-owned enterprise is different from the private enterprise.So,this article research on the impact of financial flexibility on corporate value based on analysis of ownership property perspective.In this paper,we build a multiple regression model with the financial flexibility as the independent variable,taking the Shanghai and Shenzhen A shares listed companies as the research sample in 2011 to 2016.First of all,test the relationship between the financial flexibility and firm value,and the results found that companies have a positive correlation between the level of financial flexibility and corporate value.Secondly,study the influence of financial flexibility on corporate value based on analysis of ownership property perspective.The research sample is divided into the financial developed area and the financial underdeveloped areas according to the degree of financial development in different regions of China,and the empirical results show that financial flexibility of the enterprises have more significant influence on the firm value in the financial underdeveloped areas.Finally,according to the nature of property rights of listed companies,the research sample is divided into the stateowned enterprises group and the private enterprises group to study the influence of financial flexibility on corporate value based on analysis of ownership property perspective.It is found that at the financial underdeveloped areas,the influence of financial flexibility on enterprise value in private enterprises is greater than the influence in state-owned enterprises,and that at the financial developed area,the difference from the influence of financial flexibility on value effect caused by the property right is unapparent.