Research On The Impact Of Financial Flexibility On Corporation Value-From The Perspective Of Financing Constraints

The rapid development of China's economy is accompanied by the deepening of the marketization process.However,the imperfection of the capital market and the scarcity of financial resources have limited the rapid development of a large number of enterprises in China.The financial chain breaks caused by financing difficulties are endless and seriously damage corporate value.In the complex and ever-changing business environment of the future,how to increase the flexibility of their choices,avoid falling into the constraints of financing constraints,and increase the value of enterprises while improving their ability to avoid risks,which is of great importance to the sustainable development of enterprises.Therefore,in the realistic context of financing constraints,it is extremely necessary to explore the role of financial flexibility in corporate value.The public companies of Shanghai and Shenzhen A-shares from 2009 to 2017 were selected as research samples by this paper.Firstly,examine how financial flexibility affects corporate value.Then,introduce the perspective of financing constraints,and analyze whether corporate value will differ in the value effect of the reserving financial flexibility due to the different degree of financing constraints.Furtherly,explore whether the dependence of corporate value on cash flexibility and debt flexibility is different under different degree of financing constraints.Finally,based on the results of empirical analysis,policy recommendations are proposed for listed companies to enhance corporate value.It can be concluded from this paper that:(1)Financial flexibility positively affects corporate value,that is,the financial flexibility of reserves has a positive effect on enhancing corporate value;(2)Financing constraints can enhence the positive effect of financial flexibility on corporate value.That is,there is a significant difference in the value effect of reserving financial flexibility due to different financing constraints.Specifically,the value effect of strong financing constraints on corporate financial flexibility is higher than that of weak financing constraints;(3)The dependence of corporate value on cash flexibility and debt flexibility under different financing constraints is different.Specifically,when in the face of weak financing constraints,the value effect of the debt flexibility is greater than the value effect of the cash flexibility.When in the face of strong financing constraints,the value effectof the cash flexibility is greater than the value effect of the debt flexibility.Consequently,some advice can be proposed that Chinese public companies should pay attention to financial flexible reserves,establish financing constraints-financial flexibility linkage mechanism,accelerate the construction of capital market,and broaden the channels of financing and financial flexible reserves to promote enterprise value-added.