Research On Financial Flexibility,Family Enterprise And Inefficient Investment

Investment is one of the important economic behaviors of enterprises.Efficient investment can endow enterprises with strong expansion ability and stable market position,while inefficient investment not only wastes the resources of enterprises,but also reduces the overall economic operation efficiency.Then,due to the objective existence of information asymmetry and principal-agent problem,the phenomenon of inefficient investment of enterprises is common.Therefore,how to restrain the enterprise non-efficiency investment is a common concern of academia and practice.With the innovation and iteration of financial evaluation system,the concept of financial flexibility comes into researchers’ field of vision.In the long-term economic "L" type process,enterprises are in an increasingly complex environment,and it has become the consensus of entrepreneurs and management to reserve a certain level of financial flexibility.Financial flexibility can not only iron out the financial fluctuations caused by the capital market,but also strengthen the ability of enterprises to cope with uncertain events,or help enterprises to grasp favorable investment opportunities.At the same time,the perfect micro-governance mechanism of family enterprises can help them better understand and apply financial flexibility,so as to improve investment efficiency and enterprise value.Based on the above background,this paper explores whether financial flexibility can improve the investment efficiency of enterprises,and introduces the nature of family enterprises into the analysis framework to further explore the impact of family enterprise nature on the relationship between financial flexibility and non-efficiency investment.This paper first defines the concepts of financial flexibility,family business and non-efficiency investment by combining theoretical analysis and empirical test.Secondly,the literature and theories related to financial flexibility,family business and non-efficiency investment at home and abroad are reviewed to consolidate the theoretical foundation for the later empirical test.Thirdly,financial data of a-share listed companies in Shanghai and Shenzhen from 2009 to 2016 were selected as research objects to respectively discuss the impact of financial flexibility on insufficient and excessive investment,and introduce the interaction term between family business nature and financial flexibility to explore the regulating effect of family business nature on financial flexibility and non-efficiency investment.The main conclusions of this paper are as follows:(1)high financial flexibility can significantly inhibit underinvestment;At the same time,it will lead to excessive investment behavior;(2)compared with non-family enterprises,family controlled enterprises weaken the inhibiting effect of financial flexibility on non-efficient investment.At last,based on theoretical analysis and empirical result,summarizes the research conclusion,and combined with manufacturing in China and the actual situation of the family business,from a financial flexibility reserves and two sides of the family business management,put forward effective countermeasures and Suggestions,and points out that the research limitations and deficiencies,and prospects the way of further researchs.