Research On The Relationship Between Earnings Quality,Financial Flexibility And Enterprise Value

With the advent of globalization and information age,the business environment and operation mode of modern enterprises have undergone great changes,and the internal goals pursued by enterprises are gradually shifting to the value maximization.Value maximization emphasizes the sustainable and healthy development of the enterprise,and pays attention to the rational use of resources inside and outside the enterprise.However,the existing financial analysis model fails to keep up with the goal of enterprise value maximization,still pays attention to the short-term profitability of the enterprise,and involves less in the management mode and internal driving factors for the long-term development of the enterprise,which is not conducive to the sustainable development of the enterprise.Therefore,under the background of increasingly fierce competition and rapidly changing environment,it is a realistic and urgent problem facing the academic circle to study the intrinsic driving factors of enterprise value and select the appropriate value measurement index.Based on this,this paper is on the basis of sustainable development theory,combined with the current domestic and foreign scholars about the latest achievements of enterprise financial strategy and enterprise value,put forward the "earnings quality,financial flexibility,growth rate-enterprise value" theoretical framework,through the enterprise dynamic,long-term value creation process into several specific,measurable financial indicators,the financial content analysis expanded to the industrial chain of enterprise development.At the same time,this paper repeatedly explores the mechanism of the variables and the underlying principles,and explores the following questions according to the logical lines of "profit-flexibility-growth" : first,the effect of the earnings quality and financial flexibility on the value of the enterprise;second,the specific role of the growth rate of the enterprise in the influence of the financial flexibility on the enterprise value;third,whether the effect of the variables changes before and after the epidemic.This paper mainly selects 76 domestic listed film and television companies from 2016 to2020 as research samples for empirical analysis.Specific research methods include descriptive analysis of classified samples,inter-group mean difference test and multiple regression model.First of all,this paper determines the evaluation methods of each variable based on previous studies.At the same time,combined with free cash flow theory and money demand theory,the relevant variables are analyzed theoretically and the research hypothesis of this paper is proposed.After that,indicators such as sustainable growth and deviation from sustainable growth were introduced in this paper to conduct multidimensional classification of the samples.Financial flexibility and enterprise value description statistics were carried out on the classified samples,and inter-group T-test was conducted on the sample results to identify the relationships among earnings quality,financial flexibility and enterprise value under different categories.Then,combined with the above results,this paper constructs a multiple regression model to test the relationship between variables,and uses cash-cash flow sensitivity model,investment-cash flow sensitivity model and heterogeneity analysis to identify the mechanism of action among variables.Finally,based on the above results,the potential relationship between variables and the mechanism of action are summarized to provide reference suggestions for enterprise managers and stakeholders from the aspects of enterprise operation and market competition strategy,and improve the dynamic research on enterprise financial strategy and enterprise value growth.After the above research,this paper draws the following conclusions: first,the earnings quality of financial flexibility(including cash flexibility and liability flexibility)have positive effect and enterprise value,and the financial flexibility also has positive impact on enterprise value,financial flexibility in earnings quality impact on the enterprise value of the intermediary role.The earnings quality is conducive to the financial flexible reserve of the enterprise by affecting the cash flow and capital collection of the enterprise,and the earnings quality and financial flexibility are conducive to easing the internal and external financing constraints of the enterprise,effectively promoting the growth of the investment expenditure of the enterprise,and correspondingly improving the value of the enterprise.Second,the growth rate plays a regulating role in the process of financial flexibility affecting the enterprise value.Too fast or too slow growth rate is not conducive to the value growth of the enterprise.Only when the growth rate is moderate,the operation efficiency of the internal and external resources of the enterprise will reach the maximum,and the financial flexibility has the greatest impact on the enterprise value.Third,under the epidemic environment,the market is in an "abnormal" state,and the impact of earnings quality on financial flexibility and cash flexibility is not obvious,but it is still significant on liability flexibility.At the same time,the impact of financial flexibility on enterprise value is also reduced.Earnings quality has a limited effect on the financial flexibility and flexible cash reserve of enterprises,but it still has a positive effect on the external financing of enterprises.At the same time,financial flexibility is more used to maintain the daily operation of the enterprise,and its role in the external preventive motivation and speculative motivation is reduced.