Financial Flexibility Reserve,Enterprise Investment And Performance

Manufacturing is the foundation of the sustainable and healthy development of the national economy.In 2010,the total output value of China's manufacturing industry surpassed the United States and became the world's first for the first time.However,judging from the industrial competitiveness of the manufacturing industry,China is far away from the developed countries such as the United States,Japan and Germany.Under the background of China's economy entering a new normal state,overall manufacturing overcapacity,supply-side structural reforms and Sino-US trade frictions,the environmental uncertainty faced by China's manufacturing industry is further deepened.How to promote the sustainable and healthy development of China's manufacturing industry is a major and urgent issue in theory and reality.To cope with environmental uncertainties,China's manufacturing companies have carried out financial flexible reserves from varying degrees,on which they make strategic investments.In China's practice,what is the real relationship between financial flexibility reserve,investment expenditure,and business performance in manufacturing enterprises? There is no doubt that clarifying the problem plays an significant role in theory and reality to manufacturing enterprises on optimizing the financial behavior,formulating development strategies,and strengthening the capability of managing environmental uncertainties.This thesis uses literature research,logical reasoning and empirical research methods to study the relationship between manufacturing flexible financial reserves,investment expenditure and business performance of the manufacturing companies listed in China's A-shares from 2009 to 2017.The thesis first states the background of the research,the research status at home and abroad,the main research contents and methods;Then it expounds the relevant core concepts and theoretical foundations.Next it carries out the empirical design,including the research hypothesis,the selection of the model,the definition of variables and Data selection and so on,with related empirical tests followed.Finally comes the conclusions,limitations and prospects of this thesis.After the above research,the thesis makes the following conclusions: First,the financial flexible reserve can alleviate the investment shortage caused by the financing constraints of manufacturing enterprises,which plays an important role in promoting the investment of manufacturing enterprises.Second,the financial flexibility of enterprises do help to obtain excess return and improve the business performance of the company in the future.Third,the excessive investment made by the company will also facilitate its future business performance and thus obtain the expected excess returns.