Research On The Impact Of Financial Flexibility And Corporate Governance On Corporate Value

As the process of economic globalization continues to deepen,economic cooperation and competition among countries around the world continue to strengthen,and the complexity of the economic environment faced by enterprises is gradually unpredictable.Traditional corporate governance models and capital structures are no longer able to cope with the economy.Various risks caused by rapid development.After the 2008 financial crisis,a large number of companies around the world closed down due to insufficient financial turnover.Companies are beginning to focus on issues such as prevention and response to risks.The academic community is also beginning to recognize the importance of being able to quickly mobilize financial resources to respond to risks in an uncertain business environment.Enterprises face complex opportunities and challenges as well as unpredictable risks.It is especially important to have good risk response capabilities.The ability to respond to risks in a timely manner,quickly and flexibly mobilize financial resources to prevent or exploit risks,and maximize corporate value is financial flexibility.Financial flexibility has the attributes of "prevention" and "utilization",which can ensure that enterprises have sufficient funds to deal with risks in the face of difficulties,and can fully utilize the funds they hold,timely grasp various investment opportunities and enhance corporate value.However,since modern enterprises are mostly operated in a mode of separation of ownership and management rights,agency problems are inevitable.If there is no effective supervision and incentive mechanism for the managers of the enterprise,the managers will be more inclined to self-interest.If the manager's focus is not on the work,but more consideration of their own interests,they will not actively seek enterprise development.Corporate value will not be improved.Due to the existence of agency problems,enterprise managers will not actively formulate financial policies that are in line with the company's own development.Financial flexibility will not be able to exert its instinctive attributes,and corporate value will not be improved.In order to ensure that financial flexibility can play an effective role,enterprises should improve corporate governance mechanisms in a timely manner.Therefore,this paper takes corporate governance as a moderating variable,and explores whether corporate governance can really play a moderating role in the relationship between financial flexibility and corporate value.Based on the definition of important concepts such as corporate governance,financial flexibility and corporate value,the thesis uses principal-agent theory and asymmetric information theory as the theoretical support of the thesis,and theoretically analyzes the mechanism and hypothesis of the research problem.The data of A-share listed companies in Shanghai and Shenzhen in 2007-2017 was selected as sample data,and carry out correlation analysis,regression analysis and stability through the relationship between financial flexibility and enterprise value from the perspective of corporate governance mechanism by SPSS 18.0.The research results show that financial flexibility and corporate governance have positive effects on the improvement of corporate value,and a sound corporate governance structure plays a positive role in the relationship between financial flexibility and corporate value.Based on the analysis results,some suggestions were put forward for improving corporate value from multiple perspectives.