The Impact Of Financial Flexibility And Dividend Payments On Corporate Investment Efficiency

High investment efficiency is an important prerequisite for enterprises to survive in the fierce competition environment.At present,the investment efficiency of Chinese enterprises is generally low,and how to improve the efficiency of investment is the focus of theoretical and practical issues.In a perfectly competitive capital market,the investment efficiency of an enterprise is determined by the average capital cost of the industry and the rate of return on the future,which is not related to the financial flexibility and the dividend policy.In reality,the information asymmetry makes the external financing cost higher than the inside,put up a bridge between financial flexibility and investment efficiency,and pay the dividend can convey the internal information of the operators have to outside investors,so as to cut off the bridge,weaken the information asymmetry,and the balance between the interests of shareholders and managers.But Min Xiao(2010)pointed out that we need to combine the unique institutional background of China to explore whether payment cash dividends can cut off the bridge between the two.Review the supervision process of China Securities Regulatory Commission on dividend distribution policy: this paper found that since 2011,the Commission on the cash dividend regulation is becoming increasingly strict,so this paper intends to 7574 non listed state-owned enterprises as the observation value,to observe the effects of government regulation policy tightening of corporate dividend payment.Some scholars said that the promulgation of a series of policies that cash strapped companies before financing are deliberately concentrated sharply to pay dividends,and the enterprise itself has sufficient cash flow less dividend,resulting in the payment from the perspective of financial flexibility and investment efficiency of enterprises from the dividend.The innovation of this paper lies in the following two aspects: first,this paper integrates financial flexibility,dividend payment and enterprise investment efficiency into the same research framework,and explores the mechanism of financial flexibility on corporate investment efficiency.On this basis,further study the dividend payment regulation of financial flexibility and enterprise investment efficiency relationship,so as to provide a comprehensive perspective to study the relationship,and to provide reference for the development of enterprise financial arrangements and dividend policy.The main content of previous research is to explore the relationship between the two variables.Second,this paper adds the index of continuous cash dividends to the measurement variables of dividend payment,but the previous literature seldom considers the influence of the previous period cash dividends on the current enterprise.This paper studies the following three conclusions: first,financial flexibility and investment efficiency is positively correlated.Companies with high financial flexibility,can be called before the company's cash reserves or in a timely manner from external financing to provide financial support for enterprises,so as to reduce excessive investment and ease the shortage of investment,the overall investment efficiency of enterprises improved significantly.Second,the increase of dividend payment will strengthen the relationship between financial flexibility and investment efficiency of low financial flexible enterprises,but has no significant impact on the relationship between financial flexibility and investment efficiency of high financial flexible enterprises.Because the outflow of funds caused by dividend payment may break the capital chain of low financial flexible enterprises,but relatively high financial flexibility of the overall cash flow,this part of the outflow of funds accounted for very low.Third,companies with continuous cash flow will weaken the relationship between financial flexibility and investment efficiency.Therefore,this paper draws the following suggestions and Enlightenment: first,business decision makers need to strengthen the importance of financial policy,improve cash reserves,and enhance financial flexibility.Second,business decision makers should adhere to prudent attitude in making the dividend policy,a comprehensive and multi perspective into consideration,because the dividend policy for the moderating effect of different financial flexibility of corporate financial flexibility and investment efficiency of different.At the same time,we should pay attention to dividend payment,which is equivalent to an option,which will weaken the difficulty of financing in the future.Third,the semi compulsory dividend policy can only selectively affect a certain kind of enterprise,and its implementation effect varies with the actual situation of the enterprise.This policy may lead to excessive dividends low flexible financial enterprises,increase the degree of financing constraints,and the impact on financial flexibility of the enterprise is not significant,also caused us to rethink the semi mandatory dividend policy implementation effect.In addition,this research conclusion can be used as the theoretical basis for the government and regulatory authorities to formulate dividend policy to regulate and guide the healthy development of the capital market.