Research On The Impact Of Financial Flexibility On Firm Value Under Uncertainty

The new normalization of economy,the rapid development of technology and the optimization and upgrading of industry make the rapidly changing market environment full of all kinds of uncertainty,which not only has a large number of investment opportunities,but also implies all kinds of crises.The uncertainty of market environment endows enterprises with the significance of reserve financial flexibility.Financial flexibility can help enterprises flexibly adapt to the changes of external environment,make decisions and survive in the complex and changeable environment.Therefore,if an enterprise wants to gain a firm foothold in the uncertain external environment,resist financial risks,seize development opportunities,and realize the steady improvement of value,it needs to reserve a certain amount of financial flexibility,and give play to its functions of "prevention" and "utilization".This paper explores the relationship between financial flexibility and enterprise value by using the method of combination of quantitative statistical analysis and case analysis.Through empirical research,it is found that the level of financial flexibility of Listed Companies in China is generally low,the awareness of reserve financial flexibility is not very strong,and there is more positive correlation between financial flexibility and enterprise value,that is,the enterprise value can be improved through reserve financial flexibility.In addition,with the increasing uncertainty of the external environment,the necessity of reserve financial flexibility is more prominent,and financial flexibility can play a more important role in promoting enterprise value.Through the case study,it is found that ZTE and Huawei have obvious differences in financial flexibility level.Facing the same uncertain market environment,their response attitude and response ability are quite different,resulting in huge differences in enterprise value.Therefore,through further exploring the path of financial flexibility affecting enterprise value,this paper puts forward relevant suggestions,hoping that Chinese enterprises can establish the awareness of reserve financial flexibility,improve the adaptability and adaptability to uncertain environment,and then realize the goal of enterprise value maximization.