Research On The Impact Of Financial Elasticity On The Value Of Listed Companies From The Perspective Of Life Cycle

With China's economic transformation and industrial restructuring,the economic environment in which enterprises are located is becoming more and more complex,and there are more and more risks and uncertainties,in terms of capital,problems such as cash flow shortage,missed investment opportunities and financing constraints are increasingly becoming a huge test faced by enterprise managers.As a kind of ability to deal with the internal and external environment,financial elasticity can help enterprises to deal with the uncertainty of the future environment and grasp favorable investment opportunities by using idle funds and unused debt-raising ability,thus promotes the enterprise value promotion,has the vital influence to the enterprise's long-term development.Therefore,this paper attempts to study the impact and difference of financial elasticity on the value of listed companies in different life period from the perspective of Enterprise Life Cycle,hoping to position the development period of China's listed companies,establish a reasonable level of financial elasticity,improve the value of the company to provide reference.Firstly,by combing the literature to understand the research status of financial elasticity and listed company value at home and abroad,the concepts of enterprise life cycle,financial elasticity and listed company value are defined and measured respectively,then,based on the theory of Enterprise Life Cycle,this paper analyzes the mechanism of the impact of financial elasticity on the value of listed companies in different life period,and puts forward research hypotheses.This paper uses empirical analysis,taking the listed companies of a shares in China from 2013 to2018 as the research object,using the cash flow classification group legal can be divided into three groups company of growth,mature and recession,combining with the performance of their financial elasticity,constructs a comprehensive index of financial elasticity by using factor analysis method,using the method of multiple linear regression,this paper compares and analyzes the impact and difference of the financial elasticity of the company in different life period on the company value and the marginal company value,and then puts forward some reasonable suggestions.The empirical results show that: there is a significant positive correlation between financial elasticity and corporate value in the growth period,no significant correlation between financial elasticity and corporate value in the mature period,and a significant negative correlation between financial elasticity and corporate value in the recession period,so it can be seen that with the development of life cycle,the impact of financial elasticity on corporate value turns from positive to negative;there is a significant negative correlation between the financial elasticityof growing companies and the value of marginal companies,and a significant negative correlation between the financial elasticity of mature companies and the value of marginal companies,but the correlation is smaller than that of growing companies,however,the financial elasticity has no significant effect on the value of marginal company in the recession period,therefore,with the development of the life cycle,the negative effect of financial elasticity on the value of marginal company becomes smaller and smaller;the impact of financial elasticity on corporate value in different life period has a lag.Therefore,the paper puts forward some suggestions for the companies in different life period: the growing companies should reasonably reserve cash flow and moderately increase the scale of investment and financing;in the mature period,the company should optimize the product structure,make diversified investment and establish good internal control mechanism;in the recession period,the company should integrate resources,develop new business and speed up the speed of capital turnover.