Financial Management Under Environmental Uncertainty

In the current complex and dynamic environment, the fundamental changes are challenging corporate financial strategies and their competitive advantage, and put forward new requests to corporate financial management. It is key for enterprises to foster and develop financial flexibility to cope with the ever-changing environmental challenges and to gain more sustainable competitive advantage.From the theoretical perspective, the article first reviewed the research on the environment and its uncertainty, and studies on financial flexibility, and pointed out the shortcomings of previous studies and research directions. Then, the author tries to combine environmental uncertainty, flexibility and financial management. Based on previous studies, the author refines the definition of financial flexibility and its characteristics.This essay is organized around the definition, framework, measurement, control and implementation of financial flexibility. The conclusions are: (1) financial flexibility is a process capability capable of systematically and continuously integrate inner and external resources and environmental uncertainty and casual ambiguity in financial management systems. It deals with environmental uncertainty through adapt to change, make use of change and create change to realize the financial and strategic objectives. Financial flexibility is composed of the following four dimensions: financial structural flexibility, financial capability flexibility, financial resource flexibility and, financial activity flexibility. (2) through mathematically calculation, the measurement formula of financial flexibility is L = upq (t s)v. Moreover, according to the economic principle, the author argues that, there is an economic area, and the area can be controlled by pre-control map. (3) In the light of the problems in financial flexibility, such as over-structuring, low quality of some staffs, the author proposed some specific suggestions, such as transition of ideology, transition of management styles, adjustment of organizational structure and so on.