Financial Flexibility and Corporate Employment

2021 ◽  
Author(s):  
Rebecca Lester ◽  
Ethan Rouen ◽  
Braden Williams
Keyword(s):  
Financial Flexibility ◽  
Corporate Employment

Stock Comovement and Financial Flexibility

2019 ◽  
Author(s):  
Anil Kumar ◽  
Stefano Sacchetto ◽  
Carles Vergara-Alert
Keyword(s):  
Financial Flexibility

Collateral menus and corporate employment: Evidence from China's Property Law

2021 ◽  
Vol 189 ◽  
pp. 686-709
Author(s):  
Guanchun Liu ◽  
Yuanyuan Liu ◽  
Yongwei Ye ◽  
Chengsi Zhang
Keyword(s):  
Property Law ◽  
Corporate Employment

The effect of financial flexibility on firm's financial leverage

2017 ◽  
Vol 2 (2) ◽  
pp. 141
Author(s):  
Akram Chegini ◽  
Vahab Bashiri
Keyword(s):  
Financial Leverage ◽  
Financial Flexibility

Financial flexibility, managerial efficiency and firm life cycle on firm performance

2019 ◽  
Vol 16 (2) ◽  
pp. 168-180
Author(s):  
Heng-Yu Chang ◽  
Chun-Ai Ma
Keyword(s):  
Life Cycle ◽  
Firm Performance ◽  
Stock Market ◽  
Life Cycles ◽  
Mature Stage ◽  
Chinese Stock Market ◽  
Financial Flexibility ◽  
Content Type ◽  
Listed Firms ◽  
Managerial Efficiency

Purpose As the capital market in China is still developing, several constraints on a Chinese-listed firm’s financing strategy have a direct impact on its financial flexibility. The purpose of this paper is to reconstruct traditional financial flexibility index (FFI) derived from the western context, provide empirical evidence within eastern context by modified FFI and examine how the managerial efficiency of Chinese-listed firms is demonstrated with modified FFI to escort corporate life cycle hypothesis. Design/methodology/approach By tailored FFI to fit the contemporary operations of Chinese-listed firms, this study investigates how managerial efficiency varies across different life stages to demonstrate the moderating power in the firm performance of financially flexible firm. Findings It is found that financially flexible firms in the Chinese stock market generally experience good firm performance, yet the managerial efficiency could gradually be diminishing at their mature stage even firms’ financial flexibility remains consistent with the agency theory. This paper sheds light on the necessity to reexamine the components in financial flexibility based on the eastern context, and provides avenue to further understand the managerial behavior of Chinese listed firms when considering firm life cycles. Research limitations/implications Although it is difficult for this current study to offer the precise weights on each factor in calculating financial flexibility, the judgment matrix method is adopted to at least provide reliable estimates in accordance with Chinese business contexts with less than 10 percent errors in contrast to the actual weights. Practical implications This modified FFI is particularly suitable for Chinese-listed firms under certain unique financial reporting regulations by adjusting a number of weights and factors. This study may help practitioners understand the managerial conduct of publicly listed firms in China. Originality/value The paper constructs a modified FFI with Chinese stock market characteristics embedded, and provides insightful evidence to explain the new pecking order theory by considering the life cycle stage of Chinese-listed companies.

scholarly journals A study on relationship between cash opportunity cost and financial flexibility

2014 ◽  
Vol 4 (7) ◽  
pp. 1467-1476 ◽  
Author(s):  
Hassan Ghodrati ◽  
Syed Ali Lajevardi ◽  
Abbas Gaeini
Keyword(s):  
Opportunity Cost ◽  
Financial Flexibility
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