The Impact Of Financial Slack On Enterprise Performance From The Perspective Of Institutional Environment

Enterprises are indispensable micro-subjects in the capital market.Their sustained and healthy operation is the basis for the sustainable development and improvement of the capital market.Therefore,the research on the operation of micro-subjects in the macro-environment can't be separated from the governance at the micro level.Financial slack is a kind of resource slack from its essence,but it actually reflects the company's behavioral decision,and finally it is the result of corporate governance.The level of financial slack can't only reflect the company's planning and strategy for the future.The choice can also reflect the business situation of the company in the past period of time,and thus summarize the financial slack suitable for the enterprise.Although the current research on the relationship between financial slack and corporate performance is mature at home and abroad,the relationship between the two has not been determined,based on different research objects,specific research background,different ways of measuring financial slack,etc.There is a difference in the relationship between financial slack levels and firm performance.Among the many industries in China,the liquor industry is a relatively free cash flow industry,but its overall financial slack is not high.However,through the empirical study of A-share liquor listed companies between 2008 and 2017,it is found that: financial slack level is positively correlated with the performance of the company.This is consistent with the theory of organization theory.It further shows that in the context of China's special system,the impact of financial slack on the liquor industry is generally more beneficial than harm,explaining the liquor.An incentive for a company to have financial slack resources.From the current research results,few people have studied from the financial slack structure.In this paper,the financial slack structure is defined based on the objective equation method.The sum of cash slack and debt slack constitutes the level of financial slack.Based on the positive correlation between financial slack level and enterprise performance,the financial slack structure is deeply analyzed.The study finds that the debt slack in the liquor industry has a more significant impact on the relationship between financial slack and firm performance,and there is an alternative between cash slack and debt slack;firms with better business performance tend to be in debt.Redundant financial slack structure,and enterprises with relatively poor business performance tend to be “one high and one low” financial slack structure.In this paper,the main line is the impact of financial slack on corporate performance.The research on the relationship between the two is only at the micro level.However,enterprises rely on the external environment to survive and develop.The research conclusions from the perspective of institutional environment can be more truly reflect the relationship between a company's financial slack and performance.This paper conducts empirical research from the macro level and the micro level.The macro level mainly involves the market and the government.The micro level mainly focuses on the two levels of corporate governance and internal control.The empirical results show that the marketization process,the proportion of independent directors,the combination of director and general manager and the quality of internal control have a significant adjustment effect on the relationship between financial slack and corporate performance;but the quality of internal control on financial slack structure and corporate performance isn't significant;the role of government policy in regulating the relationship between financial redundancy and firm performance is significantly different due to the level of financial redundancy accumulated by firms.Therefore,the significance of this paper is that it provides a reference for future scholars to study this field from the research ideas;from the conclusion of the study,it will promote the sustainable and healthy development of the market,improve the corporate governance and the capital structure.