Financing Constraint Financial Flexibility And Inefficient Investment Of Listed Enterprises

With the rapid development of the domestic economy,investment activities of listed companies in China have made significant progress.However,under the pressure of financing constraints,listed companies still face the problem of severe external financing environment and high internal financing costs,making inefficient investment common.In addition,with the impact of the international financial market on China’s economic environment,there are various uncertain factors in future investment,making the inefficient investment behavior of listed companies increasingly serious.Although reserving financial flexibility capability can to some extent improve the problem of insufficient investment caused by financing constraints,some enterprises overly rely on financial flexibility,weakening the inhibitory effect of financing constraints on excessive investment.Based on the above background,this article starts with the impact of financing constraints on the inefficient investment of listed enterprises,and studies the moderating effect of financial flexibility on financing constraints and inefficient investment of listed enterprises.By correctly understanding the correlation between financing constraints and inefficient investment,and using financial flexibility capabilities reasonably,it helps enterprises avoid risks and better improve the inefficient investment problems of listed enterprises when facing financing constraint barriers.Therefore,studying the relationship between financing constraints,financial flexibility,and inefficient investment of listed enterprises is of great practical significance for improving the problem of inefficient investment of listed enterprises,exerting the positive promoting effect of financial flexibility,providing guidance and reference for addressing financing constraints,and enhancing the competitive advantage of enterprises.By reviewing and summarizing relevant literature both domestically and internationally,the concepts of financing constraints,financial flexibility,and inefficient investment by listed companies are defined.Using the induction deductive reasoning method,combined with the information asymmetry theory,the principal-agent theory,the pecking order financing theory and other contents,this paper studies the different correlation between financing constraints and inefficient investment of listed enterprises,analyzes the different regulatory effects of financial flexibility on the relationship between financing constraints and inefficient investment of listed enterprises,and puts forward research hypotheses.Taking A-share listed companies from 2016 to2020 as the research object,this paper constructs a model through empirical research,and conducts descriptive statistics,correlation analysis,collinearity analysis and regression results analysis,respectively verifying the correlation between financing constraints and the heterogeneity of inefficient investment in listed companies,and analyzing the moderating effect of financial flexibility on financing constraints and the heterogeneity of inefficient investment in listed companies.And the following conclusion is drawn: financing constraints have a significant impact on the inefficient investment of listed companies.As the degree of financing constraints increases,excessive investment of listed companies can be effectively suppressed,but the phenomenon of insufficient investment will become more serious;Financial flexibility has a significant negative moderating effect on the relationship between financing constraints and inefficient investment of listed companies(to avoid ambiguity in the following text,it is hereby stated that the negative moderating effect is the moderating variable that causes the main regression to change in the opposite direction rather than producing negative or negative moderating effects).With the improvement of reserve financial flexibility ability,it can alleviate the aggravating effect of financing constraints on insufficient investment,Simultaneously weakening the inhibitory effect of financing constraints on excessive investment;In non-state-owned enterprises,the regulatory effect of financial flexibility on financing constraints and inefficient investment is significantly stronger than that of state-owned enterprises.This article explores the dual effects of financing constraints on inefficient investments of listed companies,and innovatively explores the differences in the regulatory effects of financial flexibility on the two.It has certain research value for correctly understanding the "double-edged sword" effect of financing constraints and financial flexibility on inefficient investments.Finally,based on the above research,targeted countermeasures and suggestions are proposed,aiming to address financing constraints through internal and external coordination,strengthen the positive promoting effect of financial flexibility,strengthen information disclosure of listed companies,and improve their inefficient investment behavior.