Research On The Impact Of Enterprises' Financial Flexibility On R&D Investment

As the economy enters a "new normal",economic development speed has changed from high-speed growth to medium-high-speed growth.on the one hand,new technologies,new products,new formats,new business models and other investment opportunities have sprung up in large numbers.On the other hand,the pain of structural adjustment and market competition dominated by differentiation make the business environment more and more complex.Chinese enterprises,at present,not only have a large number of potential innovation opportunities and space,but also face more uncertainty of market and environment.Whether the enterprise's own financial situation can cope with the complex and changeable business environment while satisfying the enterprise's R&D investment to improve the transformation of innovation results is very important.Therefore,it is of great significance to study the impact of financial flexibility on R&D investment.Does the use of financial flexibility at this stage serve as the backing of enterprises to enhance the intensity of R&D investment? How does financial flexibility influenced by external factors promote R&D investment? What is the different impacts of different ways of obtaining financial flexibility on R&D investment? Based on the data of listed companies from 2012 to 2017,this paper makes a theoretical analysis and empirical test to focuses on the impact of enterprises' financial flexibility on R&D investment.At the same time,considering the influence of external factors,the paper examines the regulatory effect of institutional investors' shareholding and external environment of enterprises on financial flexibility and R&D investment.On this basis,we further analyze the different effects of different ways of reserving financial flexibility on R&D investment.Through research and analysis,this paper draws the following conclusions:(1)The overall financial flexibility of enterprises has a significant positive impact on R&D investment,that is,the greater the financial flexibility of enterprises,the more beneficial to R&D investment activities;(2)Institutional investors' shareholding weakens the role of financial flexibility in promoting R&D investment but a good external environment will enhance the role of financial flexibility in promoting it.;(3)Compared with pure cash flexibility and debt flexibility,comprehensive flexibility can significantly promote R&D investment.Based on the above conclusions,this paper puts forward some policies and suggestions:(1)In the new normal period of economy,enterprises should have the ability to manage flexibly their own resources to meet the market demand for technological innovation.(2)Enterprises themselves should optimize the allocation of financial flexibility and maximize the utility of financial flexibility.At the same time,they should improve the internal governance mechanism to prevent abuse of financial flexibility.(3)The state should optimize the external governance environment and guide institutional investors to pay attention to long-term value,and pursue value creation rather than short-term speculation,forming the concept of interest-related.This paper expands the economic function of financial flexibility,broadens the research category of promoting factors of enterprise R&D investment,and focuses on the effect of external factors,which helps to improve enterprises' understanding of financial flexibility.