Research On The Impact Of Financial Flexibility On R&D Innovation Of Hengrui Pharmaceutical

The pharmaceutical industry is an important part of China’s national economy,and it is also an important industry related to the national economy and people’s livelihood,protection and promotion of people’s health.Enterprise innovation has the characteristics of high risk,long cycle,high adjustment cost and strong uncertainty,and may encounter financial difficulties such as insufficient funds in the process of carrying out innovation projects.Therefore,whether the financial situation can be improved has become the top priority for enterprises to enhance their innovation capabilities,and how to effectively and stably solve financial problems such as insufficient funds has also attracted more and more attention from enterprises.As a development strategy that has a great impact on capital in the process of enterprise operation,financial flexibility can effectively integrate internal and external financial resources,optimize internal liquidity and future borrowing ability,provide financial support for the investment and development of innovative projects,and help improve the innovation ability of enterprises.After researching and combing the relevant literature at home and abroad,this paper selects Hengrui Pharmaceutical,an excellent enterprise in the pharmaceutical industry,as the research object,and studies the impact of financial flexibility on innovation based on dynamic capability theory,financing priority theory,flexible organization theory and technological innovation theory.First,this paper defines the concept and measurement of financial flexibility and innovation,and theoretically analyzes the impact of financial flexibility on innovation.Then,through data analysis,it is concluded that Hengrui Pharmaceutical has strong financial flexibility,and at the same time,the analysis of its innovation status shows that the funds required for Hengrui Pharmaceutical’s innovation activities have the characteristics of long-term intensiveness.Then,the impact of financial flexibility on enterprise innovation input and innovation output is analyzed from the four perspectives of cash flexibility,debt flexibility,equity flexibility and portfolio financial flexibility.The research conclusion shows that Hengrui Pharmaceutical’s good financial flexibility has a positive impact on enterprise innovation.On the one hand,it is manifested in stabilizing the current capital chain of enterprises,providing stable sources of funds for R&D activities and ensuring the output of R&D results;On the other hand,it is through financial flexibility to store the ability to borrow or issue equity securities at a reasonable cost in the future,so that when future R&D activities fluctuate,it can continue R&D activities.Finally,from the perspectives of maintaining cash holdings,optimizing capital structure,distributing income from low cash dividends,and broadening the funding sources of R&D activities,the enlightenment of enhancing financial flexibility is proposed,in order to provide reference for similar pharmaceutical enterprises to rationally allocate financial resources through good financial flexibility,provide operating and R&D funds and improve innovation capabilities.