Impact of Financial Crisis,Preservation of Financial Flexibility and Corporate Financing Behaviors:Evidence from China's Listed Companies

Employing the impact of global financial crisis in 2007 on China's listed companies as study event, this paper shows that,compared with non-financially-flexible companies,financially flexible companies have greater capacity to raise funds and can support their investment activities more effectively during the financial crisis.These findings support the point of view that,when confronted with cash flow shortfall resulted from unexpected adverse impacts,companies can utilize their financial flexibility preserved ex ante to finance profitable investment opportunities more effectively.