An Empirical Study On The Impact Of Financial Flexibility On Enterprise Value In The Context Of Financing Constraints

At present,China's economy has entered a new normal state,the transformation and upgrading of industrial structure and the imperfect capital market leading to financing constraints which become a reality that most enterprises can not avoid.Those companies with moderately financially flexible are able to acquire,invoke financial resources both inside and outside the enterprise,prevent or use the uncertainties of the external environment,grasp the fleeting investment opportunities,and promote the improvement of corporate value.Obtaining and holding sufficient financial flexibility is an important way to alleviate the resource constraints faced by enterprises,which can avoid the financial difficulties of enterprises,and be significance for enterprises' the survival and sustainable development.This paper first sorts relevant literature about the financing of financial constraints,financial flexibility and corporate value.Secondly,it analyzes the mechanism of the impact that financial flexibility on the enterprise value,and the mechanism of the impaction in the financing environment.Then we use the Shanghai and shenzhen A shares of the company from 2008 to 2014 as sample the factor analysis method to measure the financial flexibility and the enterprise value respectively,and construct the relevant model to test the above effects.Finally the empirical investigation of flexible financial enterprise value and their relaiton under different degree of financing constraints.The results show that the current listed companies common reserve certain financial flexibility,but the levels of overall financial flexibility is lower,there is a certain distance away from the best equilibrium,and the differences between different enterprises are big.The relationship of the impact of flexible financial on the enterprise value are inverted U-shaped,modest financial flexibility has a positive effect on corporate value,but after reaching a certain level of flexible,contribution margin of financial enterprise value to corporate value will be reduced.If continue to increase financial flexibility,the costs may outweigh the benifit,the value of the enterprise is damaged accordingly.The inverted U-shaped relationship between financial flexibility enterprise's value is more moderate in non-state-owned than in state-owned enterprises.The equilibrium point will shift to the right.Enterprises facing lower financing constraints are more likely to reach equilibrium than firms facing higher financing constraints,and the latter has a greater impact on corporate value than the former when it reaches equilibrium.This paper will help the managers to make the appropriate financial decision from the maximization of the enterprise value,pay attention to the reserve of the enterprise financial flexibility level,keep it in a suitable range.At the same time,give full play to the the pre-prevention and the role of crisis of financial flexibility to ensure that the financial flexibility under the equilibrium point,so that the positive effect will play the greatest role.