Empirical Study on the Impact of Environmental Uncertainty on Dynamic Adjustment of Financial Flexibility

Abstract

From the perspective of environmental uncertainty, this paper further studies whether the dynamic adjustment of the financial flexibility of enterprises will be affected by environmental uncertainty and its changes. Through the research, it is found that there is a reasonable level of target flexibility, and the actual financial flexibility of enterprises will constantly converge to the target. Environmental uncertainty will accelerate the dynamic adjustment of financial flexibility. The change in environmental uncertainty will also accelerate the dynamic adjustment speed of financial flexibility. It can help enterprises correctly understand financial flexibility, and then guide enterprises to make reasonable and effective financial decisions so that the financial decisions of enterprises are more scientific.