Empirical Study On Relationship Of Environment Uncertainty,Financial Flexibility And Company Competitiveness

Uncertainty is the most basic economic environment in the context of global economic integration today.This situation has existed in the subprime mortgage crisis in the United States and the sovereign debt crisis occurred in Europe.It may stem from the uncertainty caused by the turmoil in the capital market.With the continuous exploration of science by a large number of scholars,it promotes the constant pursuit of science and technology by various countries.This phenomenon brings economic benefits to enterprises,and at the same time,brings risks to the sustainable operation of enterprises.China's global economic status is in a rising stage.The current capital market is not very mature.In this context,domestic enterprises can respond to the turbulent economic environment by appropriately storing financial flexibility,and seize favorable opportunities in the crisis.In the competition,we strive to survive and develop and continuously enhance the competitiveness of enterprises.The paper takes the characteristics of environmental uncertainty as the starting point,and deeply studies the issue of financial flexibility affecting the competitiveness of enterprises,and on this basis,through the joint effect of the two on the impact of enterprise competitiveness.Based on the theory of environmental uncertainty,financial flexibility and company competitiveness,the thesis is based on principal-agent theory,strategic management theory,tradeoff theory and financing priority theory,and selects the Shanghai and Shenzhen markets in the five years from 2012 to 2016.A-share listed companies are the research objects.By effectively eliminating the data method,3190 sample data are selected,and the data is descriptive statistics,correlation analysis and multiple regression analysis.The three hypotheses proposed are validated by establishing two models.The empirical test results show that: First,the higher the degree of environmental uncertainty faced by company,the greater the financial flexibility of the required reserves of company,and the significant correlation between environmental uncertainty and financial flexibility.Secondly,the improvement of financial flexibility will cause company to hold excess cash or keep debts too low,which will lead to management's abuse of cash and lead to agency problems,resulting in high cash holding costs and debt financing costs,thus reducing company competitiveness,financial flexibility and this is a significant negative correlation between company competitiveness.Finally,the increase in environmental uncertainty has made companies have the need to increase financial flexibility,but blindly reduce the debt ratio and increase the level of cash holdings,which in turn leads to an increase in cash holding costs and debt financing costs,which will seriously weaken the competitiveness of companies.Uncertainty has a weakening effect on the negative impact of property flexibility and company competitiveness,so environmental uncertainty has a significant negative effect on the relationship between the two.