The Impact Of Financial Flexibility On Corporate Performance

In the process of economic globalization,the development of China's market economy is accelerating.The RMB exchange rate fluctuations and the continuous adjustment of economic policy,increasing the uncertainty faced by enterprises.China's capital market lags behind the western countries.Due to the asymmetry of information and the existence of agency problem,there is a big difference between internal and external financing costs.2008 outbreak of the global financial crisis and the consequent credit crunch has mad a large number of companies facing financial difficulties,with the coming of the European debt crisis also aggravate this problem.How to respond effectively to the impact of the external environment has become the focus of academic attention.There are a lot of uncertainties in the capital operation of enterprises,these uncertainty reflects the value of financial flexibility.Financial flexibility is the ability of enterprises to deal with the uncertainty of the environment to realize the enterprise value.Therefore,the source of financial flexibility and how to obtain it should be studied in this paper.How to make use of the flexible value to seek the future development is the question that the enterprise should consider in the choice of financial policy.This paper takes Chinese Listed Companies in 2010-2015 samples,studied the effect of financial flexibility on firm performance,and the moderating effects of financing constraints in between.The study provides the basis for the flexible management of enterprise financial management,and puts forward relevant countermeasures and suggestions.First of all,the paper introduces the background and significance of this paper and summarizes the domestic and foreign literature on financial flexibility,financing constraints and corporate performance,defines the relevant concepts in the article.Financial flexibility can be divided into two aspects: excess cash reserves and residual debt capacity,theoretically analyzes the relationship between financial flexibility and corporate performance,and the reason Why to take financing constraints as a moderator.Secondly,the research hypothesis is put forward,and the research variables are designed.Using the logistic regression analysis method to construct the financing constraint index.The financing constraint is used as the moderator variable,and the multiple linear regression model is constructed.The statistical analysis method of descriptive statistics,correlation analysis and regression analysis is used to conduct empirical research on the sample data.Finally,the text summarizes the research conclusion,puts forward some countermeasures and suggestions,and expounds the future research direction.This article attempted to combine the theory and practice,qualitative and quantitative research methods,normative analysis and empirical study,examined the relationship between financial flexibility and firm performance.The results of this study show that there is a positive correlation between flexible and corporate performance.Financing constraints have a positive regulatory role.The level of financial flexibility of Listed Companies in China is not high.Therefore,the enterprise should strengthen the financial flexible reserve consciousness,making financial decisions on purpose,and take into account the impact of financial flexibility.