High-tech Enterprise Financial Flexibility And Financial Risks Related To Research

Fierce market competition and technological innovation's high uncertainty make high-tech enterprises face a more volatile environment than traditional enterprises which make their financial situation and needs change continuously. The uncertain factors which affect the capital operation of high-tech enterprises have increased because of the increasingly market environment changes and these make the high-enterprises face more financial risks. The changes and uncertainties have more requirements for high-tech enterprises'financial management. Enterprises always focus on inflexible financial management. But now they are facing more and more changes and uncertainties in dynamic environment. The traditional inflexible financial management which didn't have much flexibility has no longer adapted to the current changing environment. So high-tech enterprises need a flexible financial management to respond to environment change quickly and to reduce the financial risks.The financial risks that enterprises faced are caused by every kind of uncertainties and changes. The prerequisites and significance of existence of financial flexibility are the environment change and uncertainty. This paper analyzes financial situation of hi-tech enterprises by introducing flexibility theory and discuss the question whether there a relationship between financial flexibility and financial risks in high-tech enterprises. Then we start from the content of financial activities and discuss the composition of financial flexibility by combing with features of technology innovation in high-tech enterprise. Based on these, we analysis the measurement of financial flexibility. The paper adopts empirical research methods to exam the relationship between financial flexibility and financial risks by using a multiple curvilinear regression model. We find that financial flexibility can significantly reduce the financial risks.