Research On The Relationship Between Financial Flexibility And Enterprise Performance Regulated By Executives Incentive

The study of financial flexibility is a new subject in the field of financial management,which has attracted more and more attention from both theoretical and practical circles in recent years.In modern corporate governance researches,executive incentive as an internal governance mechanism can effectively alleviate information asymmetry and reduce agency costs.Studying the relationship between financial flexibility and enterprise value can better guide enterprises to plan and reserve financial flexibility according to their development goals and strategies.This thesis chooses executive incentive as a starting point to study the regulatory role of executive incentive on the relationship between financial flexibility and corporate performance.This thesis uses the method of normative analysis and empirical research to study the financial flexible reserve of Small and Medium Board Listed Companies and its impact on financial performance.This thesis analyses the relationship between financial flexibility and corporate performance,and the moderating effect of executive incentives on the relationship between financial flexibility and corporate performance.It puts forward three hypotheses,such as the inverse U relationship between financial flexibility and corporate performance.Designing an empirical test of the relationship between financial flexibility and financial performance by using multiple regression analysis.On this basis,it introduces executive incentive into the study,and further analyses the regulatory role of executive incentive on the relationship between financial flexibility and corporate performance.Based on the data of Small and Medium Board Listed Companies from 2012 to 2017,this thesis studies the relationship between financial flexibility and corporate performance by using the designed method,and examines the regulatory role of executive compensation incentive and executive equity incentive.The results show that the impact of financial flexibility on corporate performance is interval effect,that is,appropriate financial flexibility can improve corporate performance,excessive reserve financial flexibility can have a negative impact on corporate performance.At the same time,executive incentive management can actively adjust the relationship between financial flexibility and corporate performance,and enhance the positive effect of financial flexibility on corporate performance.