Research On The Relationship Between Financial Flexibility,the Heterogeneity Of Top Management Team And Enterprise Growth

At present,the economic globalization trend cannot be halted.Consumer demand is diversified,and the requirements for products will be higher and higher.Besides,the current COVID-19 consumption is decreasing.The external uncertainties of enterprises are increasing.When Chinese enterprises are facing such a changeable environment,it is of great significance for managers to improve the ability of financial resources to deal with external risks to improve the growth of enterprises.The central government held an economic work conference,which pointed out that enterprises should play a main role and effectively control all kinds of risks.Enterprises are required to be more flexible to adapt to environmental changes and prevent and control operation and management risks.There are so many uncertain factors outside the enterprises that affect the stability of the enterprises.In order for the enterprises to develop and operate for a long time,it is necessary to maintain a steady growth force at all times,and the growth ability of the enterprises can be realized by improving the resistance to external risks through the rational allocation and effective integration of resources by the managers of the enterprise,among which the allocation of financial resources is particularly important.In order to realize the optimization of functions and the expansion of scale,enterprises need to attract excellent talents with considerable salary,invest in the research and development of new products,and need capital to invest in projects.These enterprise activities are based on the strong financial support of enterprises.The financial flexibility of enterprises can help integrate financial resources,prepare in advance to deal with the crisis brought by the uncertain environment and resist business risks.However,storing financial flexibility will also bring some negative effects.Enterprises with financial flexibility have a high level of cash flow or maintain a low debt ratio.The existence of the above two will lead to the principal-agent problem of senior managers.By reviewing the previous literature,it is found that the conclusions of the current research on the relationship between financial flexibility and enterprise growth are inconsistent.Some scholars believe that financial flexibility has a positive impact on enterprise growth,while some scholars believe that too high financial flexibility is detrimental to the healthy growth of enterprises,and some scholars believe that there is an inverted "U" relationship between the two,that is,financial flexibility promotes the growth of companies to a certain extent,after that reaching the certain level will bring adverse effects and inhibit the growth of the company.Firstly,this paper collects and carefully consults a large number of relevant literature in this field,understands and grasps the research status,and puts forward research hypotheses combined with relevant theories.The selected research period is2006-2020.Taking the data of a shares of Listed Companies in Shanghai and Shenzhen as the research sample,this paper explores the mechanism of financial flexibility on enterprise growth,and introduces the decision-maker,senior managers to test the regulatory effect of the heterogeneity of executives’ personal characteristics on this impact.The selected heterogeneity angle includes the age structure,professional background and financial background of the senior management team.Finally,it compares the effects of financial flexibility on enterprise growth in enterprises with different industrial properties.Finally,it comes to the conclusion that financial flexibility negatively affects enterprise growth,the age heterogeneity of senior management team positively regulates the relationship between financial flexibility and enterprise growth,the heterogeneity of professional background of senior management team positively regulates the relationship between financial flexibility and enterprise growth,and the heterogeneity of financial background of senior management team positively regulates the relationship between financial flexibility and enterprise growth,and compared with state-owned enterprises,In non-state-owned enterprises,financial flexibility has a more significant inhibitory effect on enterprise growth.