Abstract
As a national pillar industry, manufacturing has always played an important role in
the economic development of our country. With the continuous deepening and
diversification of economy development and information technology, not only do the
enterprises have a large number of potential investment opportunities, but also face
adverse impact caused by imperfect capital markets and uncertain environment at the same
time. Therefore, the strain capacity must be increased, and the financial risks should be
reduced to the minimum. Also the favorable investment opportunities should be seized to
maximize the value of enterprises. To some extent, financial flexibility must be reserved in
the process of the implementation of financial decisions to reach scientific and effective
financial decisions.
First of all, this paper makes a deep analysis of the development status of China's
manufacturing industry, the development characteristics of listed companies and the status
of financial flexibility by combing the domestic and foreign financial flexible research
literature, and puts forward the research hypothesis according to the related theory.
Secondly, the 3426 financial data of listed companies in China's A-share manufacturing
industry in 2014-2016 are taken as the research samples. The enterprise value is the
explanatory variable, and the financial flexibility is the explanatory variable, and the
technological innovation, and the enterprise growth, as well as product market competition
is moderator variable, the enterprise scale, the profitability, the cash flow, the debt ratio,
the equity nature, the year as the control variable , constructing multiple regression models.
The paper uses the STATA software to test the relationship between financial flexibility
and enterprise value, as well as the impact of growth of enterprises, technological
innovation, and product market competition of financial flexibility on enterprise value.
The research results show that financial flexibility and the enterprise value are inverted
U-shaped relationship; the better the growth of enterprises, the higher the technological
innovation, the more fierce competition in the product market, the more obvious the
impact of financial flexibility on enterprise value. Finally, this paper puts forward some
counter measures and suggestions to enhance the financial flexibility reserve
consciousness for the development characteristics of the manufacturing industry and the
financial flexible reserve.。