Strategic Change,Financial Flexibility And Corporate Performance

China's economic development has entered a new era.The main contradictions in China's society have changed and transformed into contradictions between the people's growing needs for a better life and the uneven development.At the same time,the product market has undergone profound changes,and product upgrading has been rapid.The life cycle is shortened.Enterprise production can not meet the increasing needs of the people,and lacks the ability to compete with foreign companies.The survival environment of enterprises has deteriorated,and strategic changes have become the only way for enterprises to survive.In this context,the research topic of this paper is the relationship between strategic change,financial flexibility and corporate performance.It explores the relationship between corporate strategic change and corporate performance,and considers the impact of corporate financial flexibility on the relationship between the two.This has a high reference value for enterprises to formulate strategic plans according to their own conditions and regulate financial capabilities.Enterprises with different natures explore the differences in the adjustment effects of financial flexibility,help the state to manage and control state-owned enterprises,and stimulate the vitality of state-owned enterprises through strategic changes.Through theoretical analysis and empirical research,the article explores the relationship between strategic change,financial flexibility and corporate performance.The results of the article show that the relationship between strategic change and firm performance is not a simple positive correlation.There is a U-type relationship between strategic change and firm performance,and there are extreme points.When the strategic change of enterprises is less than the point,due to the existence of the cost of change and the obstacle of strategic inertia,the performance of the enterprise will be reduced;when the intensity of the strategic change of the enterprise exceeds the point,then the strategic change makes the internal resources of the enterprise Increased external environmental fit and improved corporate performance.The financial flexibility of the enterprise as the internal resources of the enterprise will play a certain role in the effect of the strategic change.The research results of this paper show that the financial flexibility weakens the relationship between the strategic change and the enterprise performance,making the U-shaped relationship between the two become gentle.Financial flexibility plays a buffering role in the strategic transformation of enterprises,which can reduce the impact of internal and external environmental changes on business performance.In view of the coexistence of state-owned enterprises and non-state-owned enterprises in China,the article studies the state-owned enterprises and non-state-owned enterprises separately.The research finds that because the financial flexibility of state-owned enterprises has hidden characteristics,it is not easy to be measured,although private enterprises pay more attention to them.Financial flexibility,but the adjustment of financial flexibility in private enterprises is less than that of state-owned enterprises.Based on the research results,the article puts forward four suggestions.First,improve risk awareness and focus on market changes.Second,actively change and break through strategic stickliness.Third,adjusting financial flexibility according to the degree of change to pursue corporate value maximization.Continue to deepen the reform of state-owned enterprises and reduce unfair treatment between state-owned enterprises and non-state-owned enterprises.