Financial Ecological Environment,Financial Flexibility And Investment Efficiency

With the advent of the informationization 2.0 era,the development of the global economic governance system has promoted economic globalization to become an irreversible trend of the times.In the context of the current new trade rules and the international industrial division of labor,economic globalization has entered a period of adjustment from a high-speed promotion period,and the business environment faced by enterprises has become more complex and variable,and the degree of uncertainty in the external environment has also increased.In the global financial crisis of 2008,many companies were forced to reduce investment,stop production and even bankruptcy liquidation,global production efficiency dropped sharply.However,during the crisis,some companies with sufficient financial flexibility reserves have not been greatly affected by the economic crisis.We found it is because they rely on their own excess cash flow and low financial leverage to continue to raise funds in sufficient time to meet business development,and effectively resist this major shock.After that,the concept of financial flexibility has attracted extensive attention in academia.Dynamic contingency theory and strategic management theory believe that modern enterprises can actively adapt to environmental changes and deal with uncertainty through reserve financial flexibility.At the same time,the issue of investment efficiency is related to the long-term development of enterprises,which is the core of financial management.Therefore,the study of financial flexibility and investment efficiency is not only of practical value but also of theoretical significance.Since it is necessary to consider the specific characteristics of Chinese economic background,the financial ecological environment is not only a variable that specifically discusses the financial development of Chinese regions,but also covers factors such as economic,political and even honest institutional culture.It summarizes the external business environment in which listed companies in China are located.In summary,we combines the macroeconomic factors and microeconomic research in the same analytical framework,it is more scientific and comprehensive to study the mechanism of financial flexibility on investment efficiency under the governance of financial ecological environment,which has certain innovative valueThis article uses normative analysis,at the same time uses empirical test.The main content is based on literature review-theoretical basis-hypothesis-empirical analysis-robustness test-conclusions and recommendations.In empirical research stage,we use the data of stock markets of Shanghai and Shenzhen from 2009 to 2016 as samples.The empirical conclusions show that:(1)In China,financial flexibility reserves have a dual impact on the company's investment efficiency.Financial flexibility can alleviate the under-investment,prompting the company to grasp investment opportunities better.However,financial flexibility may also exacerbate the company's over-investment problem,mainly because excess free cash flow from flexible reserves will aggravate agency conflicts,which will increase management power,and low financial leverage will reduce debt governance,resulting in the external supervisory effect of layer behavior declines.(2)After joining the financial ecological environment variables,the impact of financial flexibility on investment efficiency has declined,specifically speaking,the financial ecological environment weakens the aggravating effect on over-investment,and weakened the inhibition of financial flexibility on under-investment.It proves the value substitution effect of good financial ecological environment and financial flexible reserve.(3)After further distinguishing the nature of property rights,we found that the regulatory role of the financial ecological environment is quite different between state-owned enterprises and non-state-owned enterprises.Specifically,the financial ecological environment weakens the role of financial flexibility on over-investment relationships is more significant in state-owned holding companies,but the financial ecological environment weakens financial flexibility on under-investment is more significant in non-state-owned holding companies.The conclusions of this paper confirm the promotion of financial flexibility to corporate investment,and provide a theoretical reference for the flexible reserve of listed companies in the context of high environmental uncertainty,in line with the background of the new normal of Chinese economy,It is also useful for financial decision-making and management of listed companies,and provide a new business perspective for the growth and strategic management of listed companies.