Financial Flexibility,financing Constraints And Underinvestment

For individual enterprises,investment activities are an important part of their production and operation,and also an important part of corporate financial decision-making.For the whole country,investment activities are an important driving force for economic growth.However,due to the market of china is immature and the corporate governance mechanism is imperfect.The investment in non-efficiency investment is insufficient,which is common in listed companies in China.The existence of insufficient investment is not only bad to the long-term development of enterprises,but also to the healthy and rapid development of the entire national economy.As a financial management strategy that has been deeply studied by scholars after the economic crisis,"Financial Flexibility" emphasizes that enterprises are facing increasingly complex operations through the maintenance of excess cash holding levels,high asset liquidity and residual debt-raising capacity.In the environment,the internal and external resources of the enterprise can be mobilized at a lower cost and with less risk,and the internal and external financing ability of the enterprise can be improved.Can this improvement of internal and external financing ability improve the underinvestment behavior of the enterprise?And under different levels of financing constraints,is there a difference in the impact of financial flexibility on underinvestment?Such research also has certain practical significance.Therefore,this paper main use normative and empirical analysis,taking the data of Shanghai-Shenzhen A-share listed companies in 2013-2017 as a sample,using Richardson's measurement of non-efficiency investment,measuring the level of investment insufficiency,and adopting multiple indicators.The method calculates the financial flexibility level of the enterprise and then studies the relationship between financial flexibility and company's underinvestment.Taking into account China's current national conditions and the degree of development of the capital market,the degree of financing constraints faced by different enterprises is different.Then choose the perspective of financing constraints,distinguished the financing constraints of enterprises by the nature of the enterprise and the;"SA Index".Study how financial flexibility affects underinvestment with different levels of financing constraints.In the end,this paper draw some conclusions:(1)There are widespread underinvestment behaviors in listed companies in China,and in these listed companies with insufficient investment,the level of financial flexibility reserve is generally low;(2)Financial flexibility and underinvestment Negative correlation.So,the financial flexibility of the reserve can ease the investment insufficiency of the enterprise to a certain extent;(3)The financing constraint is the adjustment variable of financial flexibility and under-investment,that is,the financial flexibility of the high-ficked enterprise reserve relative to the low-financing constraint enterprise It can alleviate the lack of investment in the company.Finally,this paper puts forward corresponding suggestions for the under-investment phenomenon of the listed companies in China,the low financial flexibility reserve and the financing constraints.