Study On The Effect Of Financial Flexibility On Enterprise Innovation From The Perspective Of Property Right

With the deepening of economic globalization and the increasing frequency of international trade,the business environment of national enterprises are faced with increasing uncertainty.Especially for our enterprises,on the one hand,the competitive pressure from the international market is becoming increasingly fierce,the impact of new technologies and new products exacerbate the domestic market competition.On the other hand,our enterprises are also under pressure from economic restructuring,structural change and policy changes.These uncertainties make innovation more and more important in the development of enterprises.With the changing environment,enterprises are faced with the emerging opportunities for innovative investment,while facing the financial shortage of financial difficulties,leading enterprises more and more concerned about whether their financial situation is able to meet the needs of innovative investment or not,and also makes the study of financial flexibility for the impact of enterprise innovation is particularly necessary.Based on the relationship between financial flexibility and enterprise innovation,this paper investigates the relationship between the overall financial flexibility and enterprise innovation and the different financial flexibility policy and enterprise innovation by using the combination of theoretical analysis and empirical test.On this basis,the author further analyzes the influence of the nature of property rights on these two relations.This paper first summarizes the three aspects of the factors and economic consequences of the financial flexibility,the factors of enterprise innovation and the relationship between financial flexibility and enterprise innovation,and then expounds the related concepts and theoretical basis of this paper.On the basis of theoretical analysis,this paper studies the hypothesis and establishes the empirical model,and finally chooses the data of the listed companies in Shanghai and Shenzhen from 2011 to 2016 to do the empirical research.This paper draws the following conclusions through empirical research:First,the financial flexibility between listed companies and enterprise innovation is inverted U-shaped relationship between a certain degree of financial flexibility to promote business innovation,but when the financial flexibility to increase beyond a certain level,the financial flexibility will have a negative impact on business innovation;Second,the enterprise take a simple cash flexibility policy and the combination of financial flexibility policy both can promote enterprise innovation,but take a simple liability flexible policy can not promote enterprise innovation;Thirdly,the overall financial flexibility of non-state-owned enterprises is higher than that of state-owned enterprises.The reason is that the non-state-owned enterprise's own financing constraints may weaken the agency costs generated by financial flexibility,thus delaying its overall optimal financial flexibility level.Fourth,enterprises take cash flexibility policy have a higher positive impact for non-state-owned enterprises,take liability flexible policy have a higher positive impact for state-owned enterprises,take combination of financial flexibility policy in the two types of property rights have a significant role in promoting.The research of this paper enriches the literature of financial flexibility and enterprise innovation,which has a certain reference effect on the innovation ability of Chinese enterprises from the perspective of scientific reserve financial flexibility.Based on the above conclusions,this paper puts forward some policies and suggestions: one is to enhance the flexibility of financial management awareness,scientific reserve financial flexibility;the second is to optimize the financial flexible configuration,to maximize the flexibility of financial flexibility;the third is to improve the corporate governance mechanism to prevent financial flexibility abuse.