Research On The Relationship Between Financial Flexibility And Financial Risks In High-tech Enterprise

Nowadays the economic environment is increasingly complex and changeful,and the market competition is increasingly fierce,so the management environment and financial activity of enterprise is facing with more and more risks and uncertainty.In particular,high-tech enterprises are mostly in a period of rapid development and growth.They mainly rely on technological innovation,and their main business is single,which are vulnerable to changes in the market environment.So their capital operations also face higher risks.All of that put forward higher requirements for enterprises to strengthen financial flexibility management to respond to higher financial risks.Therefore,based on the content of the financial activities,this paper probes the components of financial flexibility and the relationship with financial risk for the high-tech enterprises.The research selects a sample of high-tech enterprises as A-share firs since 2014 to 2016,and establishes multiple linear regression model to do the empirical analysis.According to the results,this paper develops recommendations for the high-tech enterprises to deal with financial risks.First of all,through literature review,we will understand the research status of financial flexibility and financial risk at home and abroad.Based on the flexible management theory,combining the changing market environment and the characteristics of high-tech enterprise technological innovation,starting from the content of financial activities,we propose the composition of financial flexibility of high-tech enterprises from a theoretical perspective,and discuss the concrete manifestations of flexible financing,flexible investment,and flexible management of high-tech enterprises on the basis of previous studies.In the meantime,this paper also discusses and studies how to measure the financial flexibility of high-tech enterprises,and puts forward measurement methods for financial flexibility.Secondly,from the three dimensions of financing flexibility,investment flexibility,and operational flexibility,the explanatory variables were selected.Multiple regression analysis was performed on the 1365 data of 538 high-tech companies listed on the A-share market from 2014 to 2016.According to the regression results,the factors that can reflect the financial flexibility of the company are analyzed by factors,and a score model that can measure the financial flexibility of the enterprise to some extent is obtained.Through empirical research,it is found that firstly financing flexibility is negatively related to financial risks,especially internal source financing.But because the external financing channels of high-tech enterprises are narrow and the financing ratio is relatively low,the correlation between financial flexibility and financial risks is not significant.Secondly,investment flexibility is negatively related to financial risk,but it has a certain lag in time.Thirdly,operating flexibility and financial risk are significantly negatively correlated.According to the empirical research results,relevant proposals are made for high-tech enterprises to deal with financial risks: maintaining the flexibility of internal financing,broadening financing channels,ensuring the R&D investment and R&D success rate,maintaining the mobility and flexibility of enterprise resources,combining with the characteristics of the company itself and the market environment,taking early and systematic financial and flexible management measures to avoid financial risks in a flexible manner.