The Influence Of Financial Flexibility On Enterprise Value

At present,the external environment faced by Chinese enterprises is undergoing a series of profound changes,mainly reflected in the fact that the foundation of domestic economic recovery is not solid,and the external environment is not very peaceful,which makes the economic environment in which equipment manufacturing enterprises are located more complicated.As an important pillar industry of China’s economic development,how to sustain,healthy and stable survival and development of equipment manufacturing industry under such uncertainties in the external environment has become an urgent problem for enterprises.In order to solve this problem,many enterprises adopt financial management measures such as retaining more cash and reducing financial leverage to cope with the uncertainty of the external environment.Relevant studies by scholars at home and abroad show that the appropriate amount of financial flexibility can effectively enhance the ability of enterprises to cope with changes in the external economic environment,seize investment opportunities,enhance corporate value,and achieve sustainable and healthy development.This paper focuses on the impact of reserve financial flexibility on enterprise value.Firstly,this paper sorts out and discusses the relevant concepts and basic theories,so as to provide a theoretical basis for the research of this paper and construct a conceptual framework.Secondly,the development overview and financial flexibility status of listed companies in the A-share equipment manufacturing industry are analyzed to provide a basis for empirical research.Thirdly,by analyzing the mechanism of financial flexibility on enterprise value,a research hypothesis is proposed,and a multiple regression model is constructed,and an empirical analysis is carried out from 2010 to 2021 based on the samples of listed companies in the A-share equipment manufacturing industry.The analysis results show that the reserve financial flexibility of listed companies in the equipment manufacturing industry is conducive to the improvement of enterprise value.Finally,based on the research conclusions,this paper puts forward countermeasures and suggestions to enhance enterprise value from the perspective of optimizing corporate financial flexibility.