Study On The Impact Of Capital Market Opening On Financial Flexibility Of Listed Companies

Under the background of the current implementation of the "dual circulation" of the economy,the high-level two-way opening of the capital market is an inherent requirement for building a new pattern of dual circulation development.In November2014 and December 2016,China successively implemented the "Shanghai-Hong Kong Stock Connect" and "Shenzhen-Hong Kong Stock Connect" policies,marking that China’s capital market has entered a new stage of two-way opening-up.However,the two-way opening of the capital market will aggravate the contagion of risks between China’s capital market and the international capital market,China’s financial system is more vulnerable to external risk factors,and the financial environment faced by enterprises will also change and increase uncertainty.Financial flexible dynamic management can help enterprises obtain competitive advantages and achieve value enhancement in an uncertain environment,so it is of great significance to pay attention to the impact of capital market opening on the flexible financial management behavior of enterprises.This thesis sorts out the research literature related to capital market opening and financial flexibility,analyzes the development process and development status of capital market opening,the main contents of financial flexibility,and the relevant theoretical foundations such as uncertainty theory,financing constraint theory,flexible organization theory and dynamic contingent theory.On this basis,the internal mechanism of capital market opening affecting the financial flexibility of listed companies is analyzed,and the hypothesis that capital market opening promotes listed companies to improve debt flexibility and cash flexibility is put forward,and the heterogeneous impact of capital market opening on financial flexibility is further revealed according to different property rights nature,manager confidence and product market competition.With the help of the quasi-natural experiment of "Shanghai-Shenzhen-Hong Kong Stock Connect",the hypothesis was empirically tested by multi-stage DID model based on the sample of A-share listed companies from 2011 to 2021,and the robustness of the empirical results was tested by PSM-DID and placebo test methods.The main conclusions of this thesis are: first,the opening of the capital market has promoted listed companies to improve their debt flexibility and cash flexibility.Second,after the opening of the capital market,the degree of flexible increase in debt of state-owned enterprises is greater than that of non-state-owned enterprises,but the degree of flexible improvement in cash of state-owned enterprises is less than that of non-state-owned enterprises.Third,after the opening of the capital market,the degree of improvement of the debt flexibility of enterprises with low confidence is greater than that of enterprises with high confidence of managers,but the degree of improvement of cash flexibility of enterprises with low confidence is less than that of enterprises with high confidence of managers.Fourth,after the opening of the capital market,enterprises in the weaker product market competition environment have increased their debt flexibility and cash flexibility more than enterprises in strong product market competition.Based on the above conclusions and combined with the institutional background of China,this thesis puts forward policy recommendations from the policy level and the enterprise level.