Research On Corporate Governance,Financial Flexibility And Non-efficiency Investment

In recent years,China's economy has maintained a rapid development.However,due to the fact that the development of China's capital market is still not perfect,the issues of principal-agent conflicts and information asymmetry are serious.Many listed companies in China have problems of inefficient investment.Scholars have found that companies with sufficient financial flexibility can better grasp investment opportunities in the face of uncertain shocks,and the financial flexibility of companies has become a key factor in investigating corporate investment issues.The research results of this paper are of great significance to the study of financial flexibility and non-efficiency investment of enterprises,help enterprises to establish appropriate financial flexibility mechanism,promote the combination of financial flexibility and corporate governance,and effectively improve the company's non-efficiency investment.This article first summarizes and combs the theory related to the company's non-efficiency investment behaviors.Through collecting the 2013-2016 data of all A-share listed companies in China,the Richardson residual investment model is used to measure the investment level of the company and evaluate whether the company realizes an under-investment.Or invest too much.Then analyze how the financial flexibility leads to non-efficiency investment of the company.In the analysis process,the listed companies will be introduced into the corporate governance level according to the nature of the property rights.After a more in-depth theoretical analysis of how the financial flexibility affects the non-efficiency investment of the company,this paper proposes Assumptions.Finally,empirical tests of the hypotheses proposed in this paper and their economic implications are explained through relevant models.The main conclusions of this paper are as follows: First,financial flexibility can effectively improve the company's non-efficiency investment.On the one hand,financial flexibility can ease the lack of investment,but excessively high financial flexibility reserves can also increase the possibility of excessive investment by companies.Secondly,in the course of research on companies with different property rights,it was found that financial flexibility has a different degree of influence on non-efficiency investment in state-owned and non-state-owned enterprises.The concrete manifestation is that the financial flexibility of non-state-owned enterprises is to ease their own investment.The effect of deficiencies is better than that of state-owned enterprises;the financial flexibility of state-owned enterprises' reserves is more likely to aggravate over-investment than non-state-owned enterprises.Finally,the research on financial flexibility and non-efficiency investment of companies is analyzed under the framework of corporate governance.It is found that companies with high governance levels can strengthen the flexibility of financial flexibility to mitigate the lack of investment and reduce the possibility of excessive investment in the enterprise..On the basis of the above conclusions,this article proposes three policy recommendations: Enterprises should appropriately reserve financial flexibility and establish standardized evaluation indicators;corporate management should pay attention to the perspective of corporate governance,optimize the system,and effectively prevent the abuse of financial flexibility;enterprises should actively create a good external environment and reasonably restrict corporate behavior.The main innovations in this article are: First,domestic scholars are more concerned with financial flexibility and underinvestment.Based on this,the paper takes the data of all listed companies in China as a sample,and conducts an empirical analysis on the financial under-investment and over-investment of companies.Second,this paper combines corporate governance to further study the relationship between financial flexibility and investment insufficiency and financial flexibility and over-investment,and concludes that effective corporate governance can improve non-efficiency investment problems caused by financial flexibility,which has important theories And practical significance.Third,the conclusions of this paper are highly specific to the actual economic situation in the country,which helps to make targeted recommendations to listed companies.