| As the world is globalizing at a fast pace,the board of directors is playing an increasingly important role in the management of enterprises under modern enterprise system while administrators pay more and more attention to financial flexibility.Financial flexibility is the ability to utilize existing funds and financing capacity to deal with emergencies and investment opportunities.Keeping a certain degree of financial flexibility will help enterprises increase their competitiveness and seize better investment opportunities.This thesis analyzed the impact of the board characteristics on financial flexibility with five indicators from the three aspects of Organizational characteristics,Behavioral characteristics and Incentives characteristics.The five indicators are namely board size,the position merging of chairman and general manager,the number of annual meetings of the board,the proportion of holding directors and the proportion of paid directors,which can comprehensively reflect enterprise financial flexibility from the perspectives of cash holdings and financing constraints.Through empirical analysis of the data of listed enterprises from 2011 to 2014,it'd been found that the size of board had a negative impact on financial flexibility while the number of annual meetings of the board and the proportion of holding directors impacted it positively.After The final control packet inspection this kind of correlation was believed to be more obvious in non-state-owned enterprises.Keeping a certain degree of financial flexibility is not only a competitive advantage,it can also help boost market competitiveness and better grasp investment opportunity and realize the transformation of financial position.Therefore,enterprises could enhance their financial flexibility via measures such as internal accumulation,improving liquidity,cooperation with government and partners they could also adjust financial flexibility by taking action in the field of governance of the board. |
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