Research On The Impact Of Financial Flexibility On Investment Efficiency Under The Adjustment Of Management’s Risk Preference

Dynamic contingency theory and strategic management theory believe that modern enterprises can actively adapt to environmental changes and deal with uncertainty through reserve financial flexibility.The issue of investment efficiency involves the long-term development of an enterprise and is the core of financial management.In addition,the research on the investment of listed companies in my country must take into account the influence of the company’s internal decision makers’ behavior,and the risk preference characteristics of the company’s management will inevitably have an impact on investment and financing decisions.This paper adopts literature research method,normative research method and empirical research method,combined with principal-agent theory,free cash flow theory,financing prioritization theory and bounded rationality theory,selects the sample data of listed companies in the manufacturing industry of Shanghai and Shenzhen main board from 2010 to 2019,and constructs The model empirically tests the impact of financial elasticity of listed companies in my country on investment efficiency,and introduces the moderating variable of management risk preference to study the moderating effect of management risk preference on the impact mechanism of the two,and further analyzes the relationship between different property rights and main variables.influences.Combining the results of theoretical analysis and empirical testing in this paper,the following conclusions can be drawn:(1)The financial flexibility reserve can promote the company’s investment expenditure and has a dual impact on the company’s investment efficiency.This is manifested in the fact that financial flexibility can alleviate the company’s lack of investment and prompt the company to better grasp investment opportunities.However,financial resilience can also exacerbate a company’s overinvestment problem and reduce the governance role of debt.(2)Management’s risk preference prompts enterprises to expand investment,aggravates over-investment,and alleviates under-investment,which proves the value substitution effect of management risk preference and financial flexibility reserve.(3)Compared with non-state-owned enterprises,the impact of financial flexibility of state-owned enterprises on investment efficiency and the adjustment effect of management’s risk preference are not obvious.This paper has certain practical value and theoretical significance.It provides empirical evidence for enterprise management selection,and also helps decision makers to deepen their understanding of financial flexibility,optimize the allocation of financial resources,and improve their own investment efficiency.It enriches the connotation of the influence of behavioral finance theory on corporate investment decision-making,and expands and deepens the study of financial elasticity theory.