The Research Of The Financial Flexibility On Investment Behavior

As an important financial behavior of companies,investment plays an important role in the development of the companies.But a prominent problem which must be solved properly now is that enterprises' inefficient investments are too common in the country.With the domestic and international market environment more complicated and changeable,in order to improve the ability to respond and investment,financial flexibility is of great significance to the sustainable management and development of companies.However,because of the factors such as Imperfect Market,Incomplete Contract,Principal-agent Conflict,Asymmetry of Information and something else,improving of financial flexibility may lead to enterprise's inefficient investment.This article researches on the influence mechanism of financial flexibility on investment behavior,wishing to make a contribution to improve the inefficient investment behavior of China's companies and economic consequences of financial flexibility.First of all,this article summarizes the research status on financial flexibility and investment behavior and defines the connotation of financial flexibility and investment behavior of companies.The motivation of investment behavior and the influence of financial flexibility on the investment behavior of companies based on the information asymmetry theory,the principal-agent theory,the financing constraints hypothesis and the free cash flow hypothesis.Secondly,according to the theory proposed assumptions and the financial flexibility as explanatory variables,according to investment efficiency recognition distinguish under-investment and over-investment,empirical analysis of the influence of financial flexibility of investment behavior.The study found that: In the investment behavior of China's manufacturing industry listing Corporation,there are two kinds of efficiency of investment behaviors,which are under-investment behavior and over-investment behavior.In general,the listing Corporation of manufacturing industry in our country realize the importance of financial flexibility,and reserve a certain financial flexibility.Financial flexibility will reduce the occurrence of the under-investment,that is,financial flexibility is significantly negatively relevant to under-investment behavior of companies;Financial flexibility will increase the over-investment behavior of companies,that is,financial flexibility is significantly positively relevant to over-investment behavior.Finally,according to the results of empirical analysis,based on the perspective of financial flexibility,the following three points of enterprise investment behavior optimization measures are put forward:(1)Establishing a scientific concept of financial flexibility;(2)Reserving financial flexibility by diversified channels;(3)Constructing a "financial flexibility" early warning system for capital investment.This article puts forward suggestions for reducing the inefficiency investment behavior of companies from method of financial flexibility and strengthening the supervision and management of investment behavior.