The Impact Of Financial Flexibility On Investment Decisions And Non-efficiency Investments

In the face of ever-changing markets,if enterprises can't adapt to changes in the market economy in time,it is easy to put themselves in a passive economic position and thus face the danger of being eliminated.The position of funds in the survival and development of enterprises is unquestionable.Good capital dispatching,strong refinancing ability and correct investment decision-making are the driving force and foundation for sustainable development of enterprises,which are related to the lifeblood of enterprise development.When faced with a major uncertain economic environment,how to quickly raise funds and how to accurately grasp and utilize investment opportunities is particularly important.At this time,the strategy of financial flexibility reserve has practical significance.After the financial crisis,the research on financial flexibility gradually entered the researcher's field of vision.Enterprises also pay more and more attention to the reserve of financial flexibility.In the market environment with high uncertainty and fierce competition,the financial flexibility of reserve can enable enterprises to respond to environmental shocks in a timely manner.It is the key financial strategy of the company to grasp investment opportunities in a timely manner.Investment activity is one of the most important activities of an enterprise.Investment decisions are influenced by various factors such as cash flow,debt-raising ability,investment expectation,and external financing constraints.It is related to the lifeline of enterprise survival and development,and explores the relationship between financial flexibility and corporate investment.It is theoretical and practical for companies to make correct investment decisions and improve investment efficiency.What is the impact of financial flexibility on the level of investment and investment structure of the enterprise,and whether the investment decision made by the enterprise is effective,and whether the financial flexibility level of different types of enterprise entities and enterprises under different financial ecological environments has greater Differences,whether they make different choices for investment activities are the issues that this study needs to explore.This study selects the CSI A-share non-financial listed companies in 2013-2017 as the research object,and draws on the research of existing literature to start from the perspectives of cash reserves,refinancing ability and financing cost.The financial elasticity index tests the relationship between financial flexibility and corporate investment decisions and non-efficiency investments by constructing multiple linear regression equations.The study found that in terms of investment decision-making,financial flexibility has a positive effect on the level of investment in enterprises,and this relationship is more obvious in non-state-owned enterprises and enterprises with poor financial ecological environment;the impact of financial flexibility on fixed assets investment is significantly greater than that of R&D.Investment,financial flexibility Enterprises have obvious structural biases in fixed assets investment.This bias is more obvious in SOEs and enterprises with better financial environment.Further considering the investment efficiency from the perspective of principal-agent theory,it is found that financial flexibility will lead to non-efficiency investment,and the non-efficiency investment caused by financial flexibility is more serious in non-state-owned enterprises and areas with better financial ecological environment.