Industry-Finance Integration, Monetary Policy and Financial Flexibility

In imperfect capital markets, companies facing financing constraints can maintain financial flexibility to capture future investment opportunities and respond to adverse shocks. The study about factors affecting financial flexibility has been a hot issue for scholars. This article takes China's A-share non-financial listed companies from 2009 to 2017 as a research sample, and from the perspective of social capital, empirically tests the effect of the industry-finance integration on corporate financial flexibility. And this paper found that enterprises with industry-finance integration tend to have a lower level of financial flexibility. Further exploring the moderating role of monetary policy on the relationship between the two, it was found that in the years of tightening monetary policy, the negative effect of the industry-finance integration on reducing the company's financial flexibility reserve was more significant.