Analysis of the Influence of Financial Flexibility on Enterprises ()
ABSTRACT
Through the analysis of empirical papers on financial flexibility over
the years it can find that the impact of financial flexibility on corporate value
shows a trend of increasing first and then decreasing, and there
is an inflection point. Financial flexibility reserve is helpful to reduce the
credit risk of the enterprise and help the enterprise to buffer under the
environment of greater uncertainty. This buffer
is more obvious when the financing constraint is greater. At the same time,
this paper puts forward relevant suggestions on how to improve the financial
flexibility of enterprises: increase the proportion of equity funds, increase
capital reserves, and choose appropriate dividend policies.
Share and Cite:
Xie, X. and Zhao, J. (2020) Analysis of the Influence of Financial Flexibility on Enterprises.
Open Journal of Business and Management,
8, 1917-1922. doi:
10.4236/ojbm.2020.84117.