Research on Financial Flexibility, R&D Investment and Corporate Performance

Yunlong Pan; Ziyun Yan

doi:10.54097/nejsa493

Authors

Yunlong Pan
Ziyun Yan

DOI:

https://doi.org/10.54097/nejsa493

Keywords:

Financial flexibility, R&D investment, Firm performance

Abstract

Amid the global wave of globalization, innovation has become the core driving force for corporate development, with the strength of innovation capability serving as the decisive factor for enterprises to stand out. Based on uncertainty theory, financing constraint theory, and flexible portfolio theory, this paper employs empirical research methods to deeply analyze how financial flexibility impacts corporate performance, with a focus on the mediating role of R&D investment. The study selects A-share listed companies on the main board of the Shanghai and Shenzhen stock exchanges from 2019 to 2024, screening a total of 6,354 sample data. Through empirical research and analysis, the following conclusions are drawn: (1) Enterprises can enhance financial performance by improving financial flexibility; (2) Higher financial flexibility promotes corporate R&D investment activities; (3) R&D investment acts as a mediator between financial flexibility and corporate performance. Finally, the paper proposes relevant recommendations based on the experimental results.

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