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This paper empirically explores whether financial flexibility significantly affects corporate green innovation performance (CGIP), and by what means? What factors moderate the relationship between financial flexibility and CGIP? Are there differences across different types of firms, regions and industries? This study demonstrates that financial flexibility significantly enhances CGIP. Financial flexibility primarily facilitates green innovation by reducing corporate risk-taking and increasing non-efficiency investments. ESG performance negatively moderates the connection between financial flexibility and CGIP, while market competitiveness exerts a positive moderating effect on this relationship. The impact of financial flexibility on CGIP is more pronounced for non-state-owned enterprises, companies in eastern China, and those in high-tech industries. Further analysis reveals that, compared to debt flexibility, cash flexibility has a more significant effect on improving CGIP. This study offers theoretical guidance and practical insights to enhance CGIP.

In this study, we test the influence of financial flexibility [FF] on corporate risk-taking [RT], a crucial aspect of firm strategy and performance. In the volatile financial landscape of emerging markets like China, understanding how FF affects risk behavior is essential. Using data from 3571 Chinese listed firms spanning 2014 to 2023, we address this gap by exploring how FF impacts RT and the moderating roles of investment efficiency [INE] and institutional ownership [INO]. Our study employs dynamic panel generalized method of moments [GMM] and a new bias-corrected method of moments to offer robust insights. We find a significant positive correlation between FF and RT. Additionally, IE and INO significantly moderate this relationship, with RT notably amplified when FF exceeds industry-and year-adjusted averages. Interestingly, during exceptional periods, such as the COVID-19 crisis, the impact of FF on RT becomes insignificant. This study offers novel insights into the role of FF, IO and INE in risk management and provides valuable policy recommendations for stakeholders navigating high-risk investments.

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This study explores the impact of debt and cash combination arrangements as financial flexibility that can improve sustainable performance in companies. This research also examines how innovation mediates the relationship between a company's financial flexibility and future sustainability achievements. Utilizing a resource-based view and path analysis, we analyze data from sustainability reports of basic and chemical industry firms listed on the IDX from 2020 to 2023. These findings provide empirical evidence that contingency theory can adapt by controlling the effect of financial flexibility on sustainability performance. As tested through debt and cash flexibility, financial flexibility has no direct impact on sustainability performance. Meanwhile, innovation is proven to depend on sustainability achievement. Empirical evidence of resource-based theory, where financial flexibility is a potential competitive advantage over the development and research process in innovation. Likewise, innovation holds a significant role in linking financial flexibility to sustainability performance. Companies with flexible finances can more easily allocate resources to innovate, increasing the company's ability to carry out activities that pay attention to the social and environmental impacts of sustainable business activities.

PurposeFinancial flexibility and investment efficiency are of vital importance in strategic choices at boardrooms, particularly in post-crisis recovery strategies. This study examines the moderating effects of investment efficiency and investment scale on the relationship between financial flexibility and firm performance.Design/methodology/approachThe authors use sample of 10,755 US-listed firms over the period 2010–2021 to examine the relationships between investment scale, investment efficiency, financial flexibility and firm performance. Particular attention is paid to overinvestment and underinvestment.FindingsFindings of this study reveal that financial flexibility mitigates investment inefficiency through reducing overinvestment. Financial flexibility contributes to boost a firm’s accounting and market performance. Additionally, investment efficiency and investment scale have moderating effects on the relationship between financial flexibility and firm performance. However, the influence of investment efficiency is greater than the influence of investment scale. Finally, the authors find that the direct and indirect effects of financial flexibility are stronger on market performance than accounting performance, implying that market is more sensitive to corporate financial policies.Research limitations/implicationsFindings of this study have implications for scholars, decision-makers policymakers, investors and other stakeholders.Practical implicationsThis study has its own limitations due to the sample selection issues, country context and the research model adopted by this study.Originality/valueThe novel contribution to the extant literature is incorporating the influence of investment scale and investment efficiency into the relationship between financial flexibility and firm performance.

In the context of slowing economic growth and increasing uncertainty, enhancing the financial flexibility of manufacturing enterprises is a critical foundation for promoting the high-quality development of the real economy. This study selects a sample of Chinese A-share-listed manufacturing firms from Shanghai and Shenzhen, spanning the years 2012 to 2022, and constructs a fixed-effects model to examine the impact of ESG performance on the financial flexibility of these firms and its underlying mechanisms. The study finds that: (1) ESG performance significantly enhances corporate financial flexibility. (2) ESG performance promotes financial flexibility primarily through mechanisms such as alleviating financing constraints, improving competitive advantages, and attracting analysts’ attention. (3) Heterogeneity analysis reveals that the positive effect of ESG performance on financial flexibility is more pronounced in high-tech firms and non-heavily-polluted firms. (4) Sub-dimensional analysis shows that corporate governance has a more significant impact on financial flexibility enhancement than social responsibility, while environmental investment exerts an inhibitory effect on financial flexibility. (5) The uncertainty associated with ESG ratings weakens the contribution of ESG practices to the financial flexibility of manufacturing firms. Based on these findings, this paper suggests that enterprises should be encouraged to actively adopt ESG practices, accelerate the improvement of their ESG disclosure systems, and support firms with strong ESG performance to foster high-quality development.

This study examines whether financially endorsed corporate social responsibility (CSR) commitments improved the stock market performance of China's listed firms during the COVID‐19 pandemic. We find that CSR itself did not lead to higher stock returns during the crisis period of the pandemic, suggesting that the moral (social) capital from CSR could not solely provide an “insurance‐like” buffer against the shock. In contrast, our results show that CSR commitments generate higher stock returns when firms are more financially flexible, implying that financial flexibility endorses implicit CSR commitments to stakeholders during a crisis. Our results are robust to a difference‐in‐differences specification, alternative CSR measures and the inclusion of additional controls.

Applying the resource-based view and dynamic capability theory, this study employs panel data analysis to examine how financial flexibility influences corporate innovation efficiency from an integrated resource-capability perspective. Analyzing data from Chinese A-share listed companies during 2013–2022, we discovered three key results. First, as an organizational liquidity buffer, financial flexibility reduces transaction costs, enhances incentives for technical talent retention, and better aligns executive compensation with innovation objectives. Second, as a manifestation of financial dynamic capabilities, financial flexibility significantly boosts a firm’s overall dynamic capabilities, thereby increasing innovation efficiency. Third, institutional investor engagement positively moderates this relationship through enhanced governance oversight. These investors strengthen governance oversight and reduce information asymmetry. Our findings advance the financial flexibility literature and offer actionable strategies to optimize innovation resource allocation and sustain R&D competitiveness. Companies should strategically build financial reserves to enhance innovation efficiency and achieve sustainable development.

: This study aims to examine the mediating role of the financing mix in shaping the influence of financial flexibility on the financial performance of listed companies in Egypt's industrial and manufacturing sector. According to an empirical methodology, the study used secondary data collected from various sources covering the period from 2002 to 2020. The analysis focuses on three of the most prominent industry leaders: Eastern Company for Tobacco and Cigarettes, Misr Aluminum Company, and the Egyptian Financial and Industrial Company, with observations spanning from 2018 to the present. Two primary hypotheses were constructed and investigated by Panel Data Structural Equation Modelling (PDSEM) using Stata/MP 17 to validate these hypotheses. The results confirm the validity of the hypotheses and shed light on the interrelationships between the variables specified therein. Significantly, the findings are consistent with the expected theoretical results . Several suggestions are made for future research. First, examining additional factors affecting the financial performance of Egyptian listed companies within the industrial and manufacturing sector. By including different time frames and a wider range of companies in this sector, the study could produce more comprehensive and varied results. Secondly, consideration should be given to extending this study from the industrial and manufacturing sector to other

Firms might adopt capital structure policies which are far away from their optimal targets, this is known in the literature as extreme financing policies. Unlike previous empirical studies, our research sheds new light on the impact of financial flexibility (changes in credit ratings and over/underinvestment) on the duration of these policies. Using a large sample of US firms for the period from 1985 to 2017, we employ a novel empirical approach of multilevel survival model estimators for different subsamples of conservative and aggressive debt policy users. The results show that, on average, the duration of extreme financing policies renders the degree of urgency to shift towards firms' optimal leverage. Accordingly, firms adopting extreme financial policies are less keen to adjust quickly to their target debt ratios and such speed of adjustment varies between conservative and aggressive debt users. Our results provide interesting empirical implications for firms adopting conservative or aggressive debt policies.

Abstract This study examines the relationship between business strategy and bankruptcy risk. In addition, it investigates the moderating role of financial flexibility in this relationship by bringing evidence from an emerging Asian market. Our sample consists of nonfinancial companies listed on the Saudi Stock Exchange from 2010 to 2019. The data was analyzed depending on Pearson correlation analysis, two independent sample t-test, OLS regression and OLS with robust standard errors clustered by the firm. We found that firms with a business strategy are less likely to face bankruptcy risk. After considering the moderating role of financial flexibility, we found that financial flexibility increases bankruptcy risk in the case of firms with a cost leadership strategy. In contrast, financial flexibility reduces the possibility of bankruptcy risk in the case of firms with a product differentiation strategy. Our findings can support emerging markets’ investors in their investment and lending decisions as they present beneficial insights into a company’s performance as informed by the effectiveness of its strategy, anticipated risks and financial flexibility. Moreover, the findings can guide regulators in revising corporate governance regulations or financial flexibility standards, which is vital to mitigate bankruptcy risk in developing economies.

This study examines the impact of profitability, debt covenants, and financial flexibility on firm value, with a specific focus on the moderating role of company growth. Using panel data regression analysis, this research analyzes financial data from ten of the largest state-owned enterprises (SOEs) in Indonesia from 2019 to 2024. The findings reveal that profitability positively influences firm value (β1=0.184, p<0.01), while debt covenants exert a negative impact (β2=−0.145, p<0.05), suggesting that excessive financial constraints limit corporate growth potential. Additionally, financial flexibility enhances firm value (β3=0.201, p<0.01), highlighting the importance of liquidity reserves in maintaining market confidence. Furthermore, company growth (β4=0.172, p<0.05) has a direct positive effect on firm value, indicating that firms with higher growth rates tend to be valued more favorably. The study also finds that company growth moderates these relationships. Specifically, higher growth strengthens the positive effect of profitability on firm value (β5=0.064, p<0.05), while it amplifies the negative impact of debt covenants (β6=−0.087, p<0.05). Financial flexibility plays a crucial role in high-growth firms (β7=0.103, p<0.01), enabling them to seize expansion opportunities while mitigating financial distress risks. These results provide valuable insights for policymakers, corporate managers, and investors, emphasizing the need for optimal debt management, enhanced profitability strategies, and financial flexibility in driving firm value. Future research should incorporate broader industry comparisons and macroeconomic variables to further refine these findings.

Livestock enterprises are characterized by profound volatility in biological assets and policy sensitivity, leading to widespread challenges in financing constraints and environmental uncertainty. This study explores the strategic role of financial flexibility in enhancing firm performance within this volatile context. Using panel data from 70 A-share livestock-listed firms in China from 2013 to 2023 ( N = 542 observations), we construct a composite index of financial flexibility and employ a high-dimensional fixed-effects estimation framework to empirically assess its impact and mechanisms. The results reveal an inverted U-shaped relationship between financial flexibility and firm performance, with an optimal turning point at 0.667, indicating that moderate financial flexibility maximizes firm performance. Moreover, financing constraints act as a significant mediator in this relationship, while environmental uncertainty amplifies the marginal effect of financial flexibility. Robustness analyses confirm the stability of these findings across alternative estimation specifications. The results suggest that maintaining an optimal level of financial flexibility not only alleviates financing constraints but also enhances resilience to external uncertainty. Policy-wise, governments should refine credit-rating and subsidy mechanisms to mitigate financing pressure, especially for small and medium-sized enterprises, while firms should establish early-warning systems of financial flexibility and optimize internal governance to sustain stable performance and promote the sustainable development of the livestock sector.

This research aimed to investigate the serial mediation role of dividend policy and capital structure in the relationship between financial flexibility and financial performance. Population of this research consists of property and real estate companies sector listed on the Indonesia Stock Exchange (IDX) over 13-year period (2010 to 2022). Purposive sampling was used. Based on the determined criteria, 6 companies were chosen as the sample of this research. Data was collected from financial reports provided by IDX website to gather proxies for each variable used. The data analysis utilized descriptive statistical analysis and inferential analysis through Path Analysis and the Sobel test to examine mediation. The results show that of the 10 proposed hypotheses, 4 are not significant: financial flexibility doesn’t significantly affect financial performance, either directly or through capital structure, or through the serial mediation of dividend policy and capital structure. Financial flexibility also doesn’t directly affect capital structure. This provides empirical evidence that managing cash holdings alone, as a risk-free asset, is not sufficient to mitigate risk in generating financial performance, given that property and real estate companies require large capital expenditures due to their inherent characteristics.

This research examined the influence of environmental, social, and governance (ESG), financial flexibility, and capital structure on company value. Company value was measured using Tobin's Q, ESG was evaluated through the ESG score from Thomson Reuters, financial flexibility was assessed through a financial flexibility proxy, and capital structure was measured using the debt-to-equity Ratio (DER). The research also employed control variables, including return on assets, firm size, firm age, growth, inflation, gross domestic product, and COVID-19. The purposive sampling method was employed to analyze secondary data from 101 companies in the ASEAN-5 region (Indonesia, Malaysia, the Philippines, Singapore, and Thailand) from 2016 to 2022. The results indicate that ESG positively impacts a company's value. Financial flexibility and capital structure have a negative effect on company value. The control variables that significantly impact ROA, size, growth, GDP, and COVID-19, while age and inflation do not have a significant effect. The relevance of this research in finance lies in strengthening the relationship between non-financial factors (ESG) and a company's financial performance, as well as in understanding how managing financial flexibility and capital structure can support companies' sustainability and long-term value.

The external business environment is increasingly characterized by volatility, uncertainty, complexity, and ambiguity (VUCA), heightening the critical role of financial flexibility in ensuring corporate survival and growth. Using a sample of Chinese A-share listed companies from 2011 to 2022, this study explores, from a demand perspective, whether and how corporate digital transformation affects financial flexibility reserves. The findings indicate that higher levels of digital transformation are associated with a reduced propensity and lower levels of financial flexibility reserves, suggesting that digital transformation significantly reshapes strategic financial resource allocation. By alleviating uncertainty and easing financing constraints, digital transformation diminishes the necessity for demand-driven financial flexibility reserves. Heterogeneity analysis reveals that the effect of digital transformation in reducing financial flexibility reserves is more pronounced among firms with low degrees of group affiliation, those without equity holdings in banks, and private firms. Furthermore, the study finds that digital transformation accelerates the speed and enhances the effectiveness of financial flexibility adjustments, optimizing resource allocation and enhancing the firm value. Therefore, corporate managers should align financial flexibility reserves with digital transformation strategies and the internal and external environment to maximize firm value.

Purpose: In the contemporary landscape, where digital transformation and macroeconomic volatility converge, delineating strategies to augment financial flexibility has become a salient concern for both the corporate and academic realms. This article takes manufacturing firms listed on China’s A-share market as the research object and explores how digital transformation enhances financial flexibility through improving supply chain efficiency, considering digital transformation potential both as an enabler of financial flexibility and a formidable challenge.Design/methodology/approach: Utilising an empirical framework that assesses manufacturing firms listed on the Shanghai and Shenzhen A-share markets over the period from 2007 to 2022, we deploy a two-way fixed effects model to dissect the interplay between the magnitude of digital transformation and financial flexibility. Robustness checks, including propensity score matching (PSM), the system generalised method of moments (system GMM) and alternative specifications for key variables, ensure empirical validity.Findings/results: Our analysis yields evidence of a positive correlation between digital transformation and financial flexibility, particularly pronounced through enhancements in supply chain efficiency. Heterogeneity analysis further reveals that the beneficial effects are more markedly felt in non-state-owned enterprises.Practical implications: This study provides empirical evidence to guide corporate managers and policymakers in leveraging digital transformation to fortify financial flexibility, particularly by enhancing supply chain efficiency and addressing challenges faced by non-state-owned enterprises.Originality/value: This research contributes novel insights into the role of digital transformation in enhancing financial flexibility, offering empirical foundations to inform the development of targeted policy initiatives.

Owing to the lack of a unified ESG (environmental, social and governance) rating standard, notable inconsistencies have appeared in ESG ratings assigned to the same firm by various rating agencies. Based on data encompassing Chinese A-share listed companies from 2015 to 2023, this paper investigates the effects of ESG rating divergence on corporate financial flexibility. We find that ESG rating divergence reduces corporate financial flexibility, and the finding remains reliable following various robustness tests. Mechanism tests show that ESG rating divergence diminishes corporate financial flexibility by raising operating leverage and the cost of equity capital, and exacerbating the degree of maturity mismatch between investing and financing. Further, we find that the negative impact of ESG rating divergence on financial flexibility is more pronounced in heavily polluting firms, enterprises with stronger market competitive positions, those facing lower financing constraints and companies with higher analyst earning forecast accuracies. We subsequently explore the economic effects of financial flexibility in reaction to ESG rating divergence. The findings indicate that ESG rating divergence negatively affects corporate sustainable resilience by first reducing financial flexibility. Overall, this study reveals the specific effects and pathways via which ESG rating divergence affects the financial flexibility of firms, holding significant implications for actively promoting the establishment of ESG systems and achieving sustainable corporate growth.

This paper investigates the concept of financial flexibility within the frameworks of financing hierarchy theory and agency theory. It analyzes the intricate relationships among financing constraints, financial flexibility, and firm performance, proposing an integrated research model to elucidate their interdependencies. Specifically, this study delves into the internal mechanisms through which financing constraints influence firms' capacity to sustain financial flexibility, particularly the utilization of operational cash flows as reserves under varying levels of financial constraints. Furthermore, the study reveals that financial flexibility exerts a significant yet context-dependent impact on firm performance. The extent of this impact is moderated by the degree of financing constraints, with higher levels of constraints amplifying the positive effect of financial flexibility on performance. These findings enrich the existing literature by offering fresh insights into how financing constraints shape firms' financial decisions and overall performance. The study emphasizes the importance of financial flexibility as a dynamic factor that varies in its impact based on the external financial environment and provides practical implications for managers aiming to optimize their firms' financial strategies.

Financial flexibility has been posited as a critical determinant of resilience and firm performance. Financially flexible companies have more cash on hand and can raise capital cheaply and more effectively to support new development possibilities and improve performance. However, the moderating role of environmental uncertainty in shaping this relationship remains underexplored, especially in fragile economies such as Iraq. In Iraq, firms face acute performance disparities rooted in systemic challenges. Recent analyses highlight that Iraqi firms with limited financial flexibility exhibit disproportionately lower profitability and survival rates compared to regional peers. Yet, existing research predominantly attributes these gaps to corruption or security risks, neglecting the moderating role of environmental uncertainty in maximising such constraints. This article investigates how environmental uncertainty moderates the influence of financial flexibility on firm performance in Iraq. A survey-based method was used to collect the data from 191 firms in Iraq. Non-probability sampling through the convenience sampling technique was used. The data was analysed using variance-based SEM, known as the SmartPLS. This study revealed that financial flexibility has a significant positive relationship with firm performance in terms of financial performance and non-financial performance. Furthermore, It was found that environmental uncertainty significantly and positively moderates the relationship between financial flexibility and firm performance in terms of financial performance and non-financial performance. The implications of the study have been discussed, and further research suggestions have been presented.

This paper investigates the impact of financial flexibility on corporate reputation using data from Chinese listed companies from 2010 to 2023. The results show that financial flexibility significantly enhances corporate reputation, with a 1% increase in financial flexibility leading to a 0.349% increase in reputation. However, this positive effect is weakened by higher perceptions of economic policy uncertainty. Further analysis reveals that the impact is more pronounced in non-state-owned enterprises and digital economy firms, while it is less significant in state-owned enterprises. The findings suggest that financial flexibility is crucial for firms facing higher market risks and rapid industry changes. The study highlights the importance of financial flexibility in reputation management and provides insights for policymakers and firms to enhance corporate reputation in uncertain economic environments.

This study investigates how financial flexibility can enhance corporate value, especially in a VUCA (volatility, uncertainty, complexity, and ambiguity) environment such as the COVID-19 pandemic. A corporation that has financial flexibility in the form of internal cash reserves and unused borrowing capacity will be better prepared to face unexpected exogenous shocks because it can obtain alternative funding as needed. In volatile situations, adaptability will allow organizations to avoid the challenge of sudden cash shortages during uncertainty, allowing them to postpone or change investments without compromising operational continuity. This study investigates the effect of financial flexibility on business value. This study uses panel data regression to analyze 234 companies listed on the Indonesian Capital Market during the epidemic period. This article uses multiple proxies for financial flexibility, such as access to internal and external resources, as well as dividends, interest, and taxes, as elements that reduce flexibility. The results show that firm value is substantially affected by financial flexibility and profitability, while debt levels and business size have no effect. Firms with good financial flexibility can be more agile in changing their capital structure and financing strategies, thereby maintaining operations and increasing shareholder value, especially during crises. This study shows that companies with more aggressive dividend policies will face challenges in maintaining financial flexibility, because large dividend payments of almost all profits will hinder reinvestment initiatives. This article suggests that organizations should prioritize financial flexibility, especially during periods of market instability or external disruptions. This is the only method to maintain their market value and operational efficiency.

As the vanguard of China's innovative manufacturing, "specialized, refined, characteristic, and innovative" enterprises should actively integrate into the wave of digitalization and leverage digital transformation to achieve leapfrog improvement in innovation efficiency. Financial flexibility, as the core capability of enterprises to resist external shocks and seize technological opportunities, is naturally fragile due to the scale constraints of specialized, refined, characteristic, and innovative enterprises. This study aims to verify the impact of financial flexibility of Guangpu Electronics under the background of digital transformation. It analyzes the process of "technology empowerment - resource integration - resource leveraging - financial flexibility enhancement" in each stage of enterprise digital transformation, and explores the process of improving financial flexibility through resource orchestration in the continuous digital transformation of enterprises. An effect evaluation system is constructed, weights are assigned to each indicator, and the impact of the case company's digital transformation on the effect of enterprise financial flexibility is analyzed.

With the in-depth penetration of the digital economy, Internet platform enterprises have become a core driving force behind the transformation of China’s economic structure and social lifestyle. Compared with traditional enterprises, Internet platform enterprises exhibit unique financial characteristics: "high growth relies on user scale and network effects, while profitability and financial flexibility are constrained by multiple factors". As a leading local life service platform in China, Meituan’s financial statements not only reflect the profit advantages of its core businesses (such as food delivery and in-store & hotel services) but also expose the practical pressures of new business losses and cash flow fluctuations. This study takes Meituan’s financial data from 2018 to 2023 as the research sample, combines a three-dimensional analysis of the income statement, balance sheet, and cash flow statement, and uses DuPont Analysis to decompose the driving factors of Return on Equity (ROE) to systematically explore Meituan’s financial flexibility level and profit model characteristics. The research findings show that Meituan’s profit model presents a "dual-drive + strategic reserve" structure: the food delivery business contributes stable cash flow, the in-store & hotel business provides core profit support, but the continuous investment in new businesses (such as community group buying, mobility services, and retail) significantly drags down overall profitability. In terms of financial flexibility, Meituan mainly relies on capital market financing (equity + debt) to maintain expansion rather than the accumulation of internal operating cash flow, forming a short-term cycle of "financing - investment - loss - refinancing". In the long run, although new businesses suppress profits in the short term, they still have strategic value to become important growth drivers in the future under the combined influence of market competition and policy environment. This study not only fills the research gap in the theory of financial flexibility and profit model interaction of Internet platform enterprises but also provides practical references for platform enterprises to optimize their financial structure and for policymakers to improve the regulatory framework.

This study examined the influence of financial flexibility on performance of State sugar manufacturing corporations in Kenya. The study was guided by Modigliani and Miller’s capital structure model mainly (trade-off, pecking order and agency cost) theories, and was based on pragmatic paradigm which provides for the use of both qualitative and quantitative research methodologies. It targeted a population of 1,145 people, drawn from employees of State sugar corporations, and used a sample size of 291, obtained from Krejcie and Morgan's (1970) Table. A structured questionnaire and interview guide were used to collect data. SPSS version 25 was used to analyse data and Hypothesis was tested at a=0.05 significance level. Pearson’s correlation and linear regression analysis showed a positive correlation between the variables (p = 0.000 < 0.05), implying that financial flexibility significantly influences the performance of State sugar firms. It was recommended that, to enhance financial flexibility in State sugar corporations, the Government should focus on strategies that help reduce costs, improve revenue generation, and strengthen financial management practices.

This study, titled "The Influence of Intangible Assets, Financial Flexibility, and Human Capital on Sustainable Growth with Green Innovation as a Moderator," aims to analyze the effects of intangible assets, financial flexibility, and human capital on sustainable growth within energy sector companies in Indonesia, with green innovation serving as a moderating variable. The research is driven by the challenges faced by the energy sector, such as climate change, resource scarcity, and the transition to renewable energy. A quantitative approach was applied, utilizing secondary data from financial reports of energy companies listed on the Indonesia Stock Exchange during the 2020–2023 period, analyzed using STATA software. The findings indicate that intangible assets have no significant effect on sustainable growth, whereas financial flexibility and human capital show positive and significant impacts. Additionally, green innovation strengthens the relationship between the three variables and sustainable growth. This research is expected to provide valuable insights for the development of sustainable business strategies in the energy sector.

Purpose: This study examines the relationship between competition in the product market (PMC), financial flexibility (FF), and business strategies in Pakistan, providing both theoretical and practical implications for companies. It contributes to the body of knowledge on strategic management, particularly related to emerging markets, and addresses the institutional voids impacting firms. Design/Methodology: For data collection, 200 companies listed on the Pakistan Stock Exchange (PSX) were chosen via using the systematic elimination method for 2010-2020. Since the study involved binary dependent variables, probit and logit regression models were applied to test the hypothesis. The study adopted Ittner and Larcker (1997), Herfindahl-Hirshchman Index (HHI), and Frank and Goyal (2009) models to assess Business Strategy, PMC, and FF respectively. Findings: PMC has a significant impact on companies to adopt a certain business strategy (i.e., defensive, opportunistic, analytical, and invasive) and the level of financial flexibility.  Similarly, financial flexibility provides companies to adapt defensive and opportunistic strategies, and it also make companies decrease the adaptation of analytical and invasive strategies. Originality: This study endeavors to provide a significant insight for companies to focus on the importance of PMC and keep track of their level of financial flexibility. The study also suggests that exploring the opportunities of investment, which are competitive in nature, can be effective and helpful in selecting the appropriate business strategy. Following this roadmap, companies can better be able to maximize their performance and value to sustain their competitiveness.

This study aims to examine the influence of financial flexibility, profitability, and financial leverage on company value using company size as a moderating variable. Property and real estate companies listed on the Indonesia Stock Exchange (IDX) between 2020 and 2024 were the subjects of this study. A total of 322 data items met the requirements for purposive sampling. This study aims to examine the influence of financial flexibility, profitability, and financial leverage on company value using company size as a moderating variable. Property and real estate companies listed on the Indonesia Stock Exchange (IDX) between 2020 and 2024 were the subjects of this study. A total of 322 data items met the requirements for purposive sampling. According to the findings, business value is negatively affected by financial flexibility, but not affected by profitability or financial leverage. It has been shown that business size increases the impact of financial flexibility on company value, but cannot reduce the interaction between profitability and financial leverage. It is hoped that this study will increase scientific understanding of the variables that affect company value and assist investors and management.

Increasing market competition means that business sustainability depends not only on innovation capacity but also on adaptive financial strategies. One crucial issue related to this strategy is financial flexibility, which enables companies to manage their liquidity and debt capacity effectively in response to funding challenges. This study advances the literature by examining 144 firms (2020-2024) using multidimensional financial flexibility proxies combined with a validated financial constraints index, thereby generating new evidence from Indonesia's institutional environment. Fixed effects, random effects, and the two-step system generalized method of moments analyses were conducted to ensure robustness. Empirical results indicate that financial flexibility has a significant negative impact on financial constraints. These results confirm the crucial role of internal mechanisms in reducing dependence on external funding. This study validates financial flexibility as a strategic instrument in mitigating market imperfections and providing practical insights for companies and regulators in emerging markets.

In an economy that is ripe with economic policy uncertainty, businesses need to manage liquidity efficiently to survive the troughs and shocks. Chief financial officers and treasurers equally recognise the risk that inefficient liquidity management can pose to the very survival of the company. This research explores the transformative potential of modern payment solutions in optimising liquidity and enhancing financial flexibility for non-financial companies. It investigates how the strategic adoption of real-time payments, blockchain technologies and other innovative payment mechanisms can revolutionise receivables and payables management, thereby improving cash-flow forecasting, reducing working capital needs and strengthening overall financial health. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.

The growth of Indonesia's manufacturing sector GDP has shown a declining trend since 2016 and was further exacerbated by the Covid-19 pandemic, necessitating improved company performance through the application of sound financial management principles. Financial flexibility, financial distress, and tax policies are key factors that need to be studied to understand their impact on the performance of manufacturing companies. This study aims to identify the influence of financial flexibility, financial distress, and tax policies on the performance of manufacturing companies in Indonesia.bThis research uses a quantitative method with a descriptive statistical approach, examining manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the period 2018-2023. A sample of 123 companies was selected using purposive sampling techniques, and data analysis was used to test the analysis hypothesis, namely panel data regression using the Eviews 12 program to broadcast the influence of financial flexibility, financial difficulties and tax policy on company performance. The research results show that financial flexibility has no significant effect on company performance and financial distress has a significant effect on company performance, while tax policy has a significant effect on company performance.

This study constructs a multi-level, systematic framework for predicting corporate financial flexibility to address the growing need for proactive resource allocation amid increasing internal and external uncertainties. Using data from Chinese A-share listed companies from 2007 to 2023, the paper integrates a comprehensive set of 14 drivers across three hierarchical levels: macro (environmental uncertainty, legal environment), meso (marketization level, industry competition), and micro (firm life cycle, growth, managerial characteristics). A continuous financial flexibility metric was first calculated using a well-established composite indicator approach and then segmented into three ordered categories (high, medium, low) using the K-means clustering algorithm. The study systematically compares the predictive performance of five machine learning models: Decision Tree, Support Vector Machine, Random Forest, XGBoost, and LightGBM. The results demonstrate that ensemble learning models significantly outperform traditional methods. Notably, LightGBM delivers the best overall performance, achieving a test set accuracy of 0.6777 with a minimal accuracy gap of only 7.81 percentage points, effectively balancing predictive accuracy, model stability, and computational efficiency. This research not only offers a novel, dynamic prediction tool for financial flexibility but also highlights the significant potential of machine learning in strategic financial management.

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In the era of digital transformation and data-driven decision-making, big data analytics capability (BDAC) is crucial for firms to enhance innovation and sustainable competitive advantage in highly dynamic markets. Grounded in dynamic capability theory, this study used a moderated mediation model to explore the impact of BDAC on innovativeness. Empirical analysis was conducted by using survey data from 270 enterprises to test the hypotheses. The results reveal that BDAC significantly and positively influences innovativeness, and sustained innovation mediates this relationship. Moreover, organizational slack positively moderates the effect of BDAC on innovativeness, both the direct effect and indirect effect. These findings provide theoretical support and practical implications for understanding how BDAC enhances firm innovativeness.

PurposeThe purpose of this study is to investigate the impact of the negative expectation–performance gap on the internationalization speed as well as the moderating role of organizational slack, based on the performance feedback theory and the springboard perspective.Design/methodology/approachThis paper takes the Chinese A-share listed companies engaged in outward foreign direct investment (OFDI) between 2010 and 2022 as the research sample. A two-way fixed effects model is employed to test the research hypotheses, using a dataset comprising 6,868 observations.FindingsThe findings show that there is a positive relationship between the negative expectation–performance gap and internationalization speed for Chinese multinational enterprises (CMNEs). In addition, this effect is stronger in private CMNEs. Furthermore, the relationship is negatively moderated by organizational slack. Additional findings suggest that that negative industry expectation-performance gap has a stronger impact on the internationalization speed. The moderating effect of unabsorbed slack resources is more pronounced.Practical implicationsWhen emerging market multinational enterprises (EMNEs) face the dilemma of underperforming, they may consider a rapid internationalization strategy as a solution to improve performance. However, EMNEs should be wary of falling into a resource trap. Organizational slack reduces managers’ incentives to identify issues associated with negative performance feedback, thereby diminishing the likelihood of addressing performance challenges through rapid internationalization. For state-owned EMNEs, optimizing organizational structure and improving the efficiency of responses to negative performance feedback are essential.Originality/valueUnlike previous studies, this paper integrates performance feedback theory and the springboard perspective to explore in depth the relationship between performance feedback, internationalization speed and organizational slack within the context of managers’ cognitive and decision-making mechanisms. It also examines the distinct impacts of historical and industry negative expectation–performance gaps as well as the different moderating roles of absorbed and unabsorbed organizational slack, which have not been explored together before.

Purpose Since the knowledge search process centers on managing distinctive and valuable resources while leveraging a particular technological context, the influences of organizational slack and environmental dynamism on exploration and exploitation have been extensively studied. However, empirical evidence on organizational slack and environmental dynamism has largely developed separately, and little is known about their relative importance and the joint impact on knowledge search. This study aims to compare the different impacts of organizational slack, technological environmental dynamism, and their combined effects on exploratory and exploitative knowledge search, thereby deepening the understanding of related knowledge. Design/methodology/approach Drawing on survey data from 243 high-tech firms, this study applies multiple hierarchical regression analyses to contrast the relative impacts of organizational slack and the frequency and unpredictability of technological changes in the environment on exploratory and exploitative knowledge searches. It also compares the interactive effects of organizational slack and technological environmental dynamism on these knowledge search processes. Findings The empirical analysis demonstrates that technological environmental dynamism exercises more influence on exploratory knowledge search relative to organizational slack. The study also finds that exploratory knowledge search is facilitated more by the interplay of slack resources and technological environmental dynamism than exploitative knowledge search. Originality/value Hence, they provide a clear explanation regarding how to craft a firm’s strategic choice between exploratory and exploitative knowledge search in different configurations of organizational slack and technological environmental dynamism.

This study empirically examines the mechanism through which intellectual property value creation (IPVC) influences corporate cross-border M&A performance. Using companies engaged in cross-border M&A from 2007 to 2024 as the research sample, it examines how actual and latent absorptive capacities mediate this relationship. Text mining methods were employed to construct an indicator of perceived external economic policy uncertainty, further investigating the moderating effects of perceived external economic policy uncertainty (FEPU) and internal organizational slack (SLACK). The findings indicate that IPVC significantly enhances M&A performance, with both actual and latent absorptive capacities serving as partial mediators. FEPU negatively moderates the positive effect of IPVC on M&A performance, while SLACK positively moderates this effect.

While the link between Environmental, Social, and Governance principles and corporate outcomes is widely examined, a significant gap exists in understanding how the intensity of national ESG policies translates into firm-level green innovation, particularly within emerging economies. This study addresses several research gaps by asking: How does national ESG policy intensity affect corporate green innovation, and what key factors moderate this relationship? To answer these research questions, this study employs text-mining methods to construct refined ESG indices for both national ESG policy intensity and firm-level managerial environmental awareness. Analyzing a panel dataset of 2854 Chinese A-share listed firms from 2013 to 2023 using fixed-effects models, our findings reveal that higher ESG policy intensity is positively associated with increased green innovation. Moreover, we find that higher levels of organizational slack and greater managerial environmental awareness positively moderate this relationship. By integrating stakeholder theory with the resource-based view and upper echelons theory, this study provides a more nuanced model of the policy–innovation nexus, highlighting that the effectiveness of macro-level ESG policies is contingent on both a firm’s resource capacity and its leadership’s cognitive orientation.

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PurposeThe present article draws from the behavioral theory of the firm, and it explores whether various dimensions of organization slack can be employed as variables to measure organizations’ antifragility during times of uncertainty such as the Covid-19 pandemic. Furthermore, considering the limitations and regulations put into place during the most recent pandemic, the present study seeks to explore the moderating effect that collaborative networks might have on the relationship between various dimensions of organizational slack and firms performance.Design/methodology/approachThe present study retrieves data from Thomson Reuters Data Stream, and it gathers observations from manufacturing companies located in Europe. The dataset is composed of observations spanning from the fiscal year 2019–2022. Consequently, through the use of a balanced panel data, the authors conduct multiple regression analysis.FindingsThe obtained empirical findings reveal that high discretion slack has a positive effect on companies performance whereas low discretion slack has a negative effect on their performance. Additionally, the obtained findings indicate that low levels of reliance on collaborative networks positively moderates the relationship between organizational slack and firms’ performance. On the other hand, high levels of reliance on collaborative networks negatively moderate the relationship between organizational slack and firms performance.Originality/valueThis manuscript carries several original contributions. It expands the literature stream concerning antifragility and collaborative networks. Additionally, it postulates an operational measure which can be used to indicate firms’ antifragility.

PurposeThe survival of companies today hinges on their adaptability and flexibility, with digital transformation (DT) and organizational slack (OS) playing crucial roles. Despite their recognized importance, these factors are often studied separately. This study aims to explore how OS facilitates DT and evaluate their synergies and trade-offs to improve performance.Design/methodology/approachUsing data from the European Manufacturing Survey, structural equation modeling (PLS-SEM) and fuzzy set qualitative comparative analysis (fsQCA), we investigate causal relationships and possible combinations between different dimensions of OS and DT that contribute to business performance.FindingsWe confirmed the positive effect of OS and DT on business performance, highlighting the importance of organizational over technological factors. While not definitively establishing OS as a precursor to DT, our findings underscore the need for human and operational slack to improve performance, especially in less technology-intensive contexts.Research limitations/implicationsOur findings evidence that decision-makers should integrate OS with DT initiatives to improve the firm’s competitiveness. However, it is worth noting that while OS seems essential in low-tech shopfloors, its importance is lower in high-tech environments. Furthermore, within the possible combinations, managers should promote operational slack and digitalization, as it seems fundamental to improve business performance.Originality/valueThis article contributes to the management field in three ways. First, it clarifies controversies by providing evidence of the positive roles of DT and OS as drivers of competitiveness for manufacturing firms. Second, we verify that OS is not directly linked to DT, challenging existing assumptions. Third, it investigates the combinations of OS and DT that drive business performance improvement, emphasizing their synergies and trade-offs.

PurposeThe purpose of this study is to examine the impact of technological diversification (TD) on enterprise innovation performance, meanwhile focusing on the moderating effects of various organizational slack (i.e. absorbed and unabsorbed slack) and ownership types (i.e. state-owned or privately-owned) in the context of Chinese listed firms.Design/methodology/approachThis study formulates five hypotheses based on organization and agency theories. Our empirical analysis employs a fixed-effect regression estimator with a unique panel dataset of Chinese-listed manufacturing firms and 13,566 firm-year observations over 9 years from 2012 to 2020.FindingsOur findings show that an inverted U-shaped relationship exists between TD and innovation performance, varying with different types of organizational slack and ownership. In state-owned enterprises (SOEs), unabsorbed slack negatively moderates the inverted U-shaped relationship; however, in privately-owned enterprises (POEs), this relationship is positively moderated. Although absorbed slack has negative moderating effects in both SOEs and POEs, its impact is only significant for POEs.Practical implicationsOur results imply that organizational slack has a contrasting impact on the relationship between TD and innovation performance when the type of ownership varies. Therefore, the managers that intend to achieve optimal innovation performance through TD should understand how organizational slack can be leveraged.Originality/valueThis study contributes to the existing literature by applying the relationship between TD and innovative performance to the transition economy, as well as examining the double-edged sword impact of state ownership on firm innovation performance.

Ambidextrous search behaviors that jointly looking for technological and market knowledge gain attention in the innovation management literature. This study treats the ambidextrous search behaviors as a technology-market search paradox and examines the effect of organizational slack on the paradox and further explore whether this paradox has synergistic effects on performance in high-tech small medium-sized enterprises (SMEs). Besides, by integrating the literature of ambidextrous search and strategic management, we seek to understand the roles of strategic orientations, including growth-oriented and profit-oriented, in SMEs’ technology-market search paradox. Based on panel data of 547 high-tech SMEs, we find that organizational slack promotes both technology and market search, and ambidextrous search separately enhance high-tech SMEs’ performance, while the interaction of technology search and market search is negatively related to performance. Further, a growth-oriented strategy positively moderates the link between organizational slack and ambidextrous search and a profit-oriented strategy reinforces the relationship between organizational slack and technology search. We further enrich search-related and strategic literature.

PurposeDigital technologies are essential for improving efficiency and unlocking new opportunities in various domains. The purpose of this study is to assess whether digital technologies can ameliorate servitization among manufacturing firms via the interaction of organizational slack and research and development (R&D) intensity.Design/methodology/approachDrawing on resource-based and service-dominant logic, the study employs a deductive approach and gathers empirical evidence from 1,929 listed A-shares manufacturing firms in the top-seven China mainland industrial provinces spanning the period 2012–2021. It used fixed-effect logistic regression techniques while controlling for various factors to analyze the relationship between digital technologies and manufacturing firm servitization.FindingsThe findings revealed that digital technologies significantly ameliorate manufacturing firms' servitization. Moreover, the study uncovers the contingent nature of this relationship, demonstrating that high levels of both internal and external slack, which provide flexibility and support, intensify the direction of digital technologies towards servitization. Additionally, R&D intensity reflects the firm's commitment to innovation, thereby enhancing synergistic effects in the relationship.Originality/valueThis study contributes robust and comprehensive empirical evidence that validates and establishes a clear baseline relationship reflecting the most current digital technology landscape and its implications for manufacturing firms servitization. Moreover, it provides a more patterned understanding of how internal and external slack typologies and R&D intensity contextualize our study’s findings. Additionally, it demonstrates how our theoretical synthesis advances firms’ strategic shifts towards service-oriented business models through digital technologies.

PurposeThis study aims to distinguish how unabsorbed and absorbed slack affects market and financial performance via proactive and reactive supply chain resilience (SCRES), particularly under varying conditions of organizational ambidexterity.Design/methodology/approachBy collecting survey data from 277 Chinese manufacturers, we verify the conceptual model applying structural equation modeling.FindingsProactive SCRES mediates the positive impacts of both unabsorbed and absorbed slack on market and financial performance, whereas reactive SCRES mediates only their positive effects on financial performance. High levels of organizational ambidexterity strengthen the indirect effects of both types of slack on market and financial performance via proactive SCRES, but not when mediated by reactive SCRES.Originality/valueWe introduce a new theoretical perspective to view fits (as mediation) between the use of unabsorbed/absorbed slack in different ways when switching attentions to proactive or reactive SCRES, both of which can be improved through organizational ambidexterity. This study offers novel insights into how managers can switch attentions between proactive and reactive SCRES knowing when to appropriately use unabsorbed/absorbed slack for which purposes, and the use of different learning modes (explorative vs exploitative).

This study aims to explore the complex interplay between entrepreneurial orientation, CEO power, and organizational slack, and their collective impact on firm performance within Indonesia’s manufacturing sector, providing actionable insights to optimize operations in a dynamic, resource-constrained environment. The paper employs a longitudinal approach, utilizing dynamic panel data from 127 publicly-traded manufacturing companies listed on the Indonesia Stock Exchange from 2014 to 2022, focusing on this sector due to its significant role in Indonesia’s economy and the unique challenges these firms face in adapting to market changes and competitive pressures. The study initially found that entrepreneurial orientation did not significantly influence firm performance. However, when CEO power was introduced into the analysis, it significantly, albeit negatively, moderated the effect of entrepreneurial orientation, suggesting that higher CEO power may actually diminish beneficial impacts of entrepreneurial orientation on performance (β = –48.041, p &lt; 0.05). Importantly, the analysis revealed that organizational slack can positively interact with both entrepreneurial orientation and CEO power, mitigating this negative influence and enhancing firm performance (β = 15.261, p &lt; 0.05). These findings illuminate the complex interdependencies within strategic management, underscoring the necessity of aligning upper echelon power dynamics with organizational resources. This alignment is crucial for leveraging the full potential of entrepreneurial orientation to enhance firm performance. AcknowledgmentsThis study received sponsorship from Beasiswa Pendidikan Indonesia and Lembaga Pengelola Dana Pendidikan (Indonesia Endowment Fund for Education). The support from these organizations has been invaluable in the completion of this work, enabling comprehensive data collection and analysis crucial to complete the study.

This study examines the interaction between executive compensation and three types of organizational slack (available, recoverable, and potential) and their impact on the innovation performance of publicly listed companies in Indonesia. The empirical analysis use a dataset of 1,081 firm-year observations from 2010 to 2019. The findings reveal that available slack positively affects innovation performance, whereas recoverable and potential slack have negative impacts. Executive compensation significantly moderates these relationships, especially nullifying the negative impact of recoverable slack on innovation. The results highlight the importance of strategic management and the role of executive compensation in enhancing a firm's innovation, offering valuable insights for shareholders and contributing to the understanding of organizational slack and compensation's effect on innovation in the Indonesian context. Keywords: organizational slack, executive compensation, innovation, innovation performance, Indonesia

Management information systems (MIS) is the usage of information systems at the operational, tactical, and strategic levels so that businesses are aided in the achievement of goals. (Oprea, 2007) While the use of MIS is already quite common, its many benefits have lately piqued the interest of researchers particularly on the phenomenon of slack. Companies typically prefer to remove slack as it has suffered from a negative reputation.  However, recent studies by Bae and Rhee (2014) as well as by Heng, Ding, Guo, and Luo (2014) have shown that slack actually leads to innovation.  It is because of these interesting discoveries that pushed the proponent to conduct a study on the contribution of organizational slack towards the innovative performance of Syngenta company. Survey were gathered to provide the needed information. Key informants were likewise interviewed in order to generate additional insights about the variables under investigation. The results showed convincingly that slack affects the innovation of the company.  However, some effects of the slacks were positive and some were negative. The recommendations put forward by this research is that JDI should maximize its innovation, they should reduce both absorbed and unabsorbed slack as much as possible since slack and innovation are inversely proportional in JDI’s case.  As long as they cut back on excessive spending on equipment and make use of their spare resources like reserve funds, then the innovation the company will surely improve.

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In high-tech industries, firms accumulate increasing amounts of excess resources. Existent research paints an ambiguous picture of these slack resources for innovation: while some slack is integral for innovation as fuel for experimentation, too much slack inhibits innovation by causing inefficiencies. However, firms in high-tech industries cannot develop and sustain competitive advantages in the long run without sufficient and steady investments in innovation. Additionally, the increasing complexities within these highly dynamic industries make it easier for managers to pursue their self-interests—often to the organization’s detriment. Against this backdrop, the role of the board of directors is particularly crucial in high-tech industries, as it determines the efficacy of the board’s governance and resource provisioning functions. This study proposes several board characteristics as moderators of the slack–innovation relationship. The dataset builds on a longitudinal sample of high-tech firms from the Nasdaq-100 Index between 2010 and 2020. The results advance management literature by extending the notion of slack resources as a double-edged sword to high-tech industries. The findings also show that this relationship is contingent on specific board characteristics: larger and more independent boards dampen this relationship, while longer board tenure, more board affiliations, and a larger share of women directors amplify it. Further, the findings caution managers to balance the necessity of slack resources for promoting innovation with its efficiency detriment. The results additionally inform practitioners on determining the optimal board composition in the face of mounting competitive pressures for sustained innovation.

This study explores the underlying mechanisms of achieving sustainable digital innovation in the context of manufacturing companies. Building on the perspective of organizational unlearning, we propose that organizational unlearning could disrupt current innovation routines and positively relate to the sustainability of digital innovation, the features of which are self-referential improvement and iterative scalability. This study conducted a questionnaire survey of 274 Chinese manufacturing companies and used SmartPLS 4.0 to analyze the data. Drawing insights from data analysis results, this study discovers that organizational-level unlearning is able to make digital innovation achievable and sustainable. In addition, this study articulates the partial mediation mechanism of strategic flexibility and organizational slack. The findings unearth the utility of organizational unlearning to manufacturing companies in the digital context, contribute to the emerging literature on digital innovation by introducing organizational unlearning as a new theoretical perspective for introducing digital transformation, and offer managerial insights to help manufacturing companies leverage organizational unlearning proactively to release its long-term benefits.

This study uses resource-based theory to examine the relationship among parent-subsidiary resource linkages, organizational slack and parent firms’ restructuring behaviours. By using data from 199 Taiwanese firms investing in Greater China and global markets. This study shows that their international strategy decision regarding resource allocation and similarity has no significant effects on the parent firm’s restructuring behaviours unless that firm has sufficient slack resources to support the restructuring. In addition, parent firms are more likely to acquire subsidiaries with dissimilar resources among their group members, than ones having similar resources same as the parent firm. Moreover, there is a U-shaped relationship between organizational slack and the parent firm’s restructuring behaviour decisions. This study constructs the research framework under the resource-based theory and examines the relationships between resource allocation, resource similarity and parent firms’ restructuring behaviour in conditions of organizational slack.

This study investigates the impact of organizational slack on the relationship between firm performance and Miles and Snow's (1978) typology. We examine a sample of 274 non-financial companies listed on the Pakistan Stock Exchange between 2006 and 2021 using panel data. In order to control auto correlation and endogeneity issues, the generalized method of moments estimation (GMM) is used to get the results. Our findings demonstrate that available or potential organizational slack strengthens the already-existing positive association between prospector, analyzer, and defender strategies and a firm's financial performance, whereas recoverable slack weakens the relationship. After taking into account endogeneity, and serial correlation, the results are robust. These findings contribute to the body of knowledge on existential dilemmas relating to the use of slack resources in the company and outline the theoretical and empirical implications of Miles and Snow's typologies.

One remaining challenge in research on variable risk-taking by organizations is to reconcile mutually contradictory arguments on associations between organisational slack and organisational degree of risk-taking. We focus on moderating (rather than moderated) influences of organisational slack to argue that slack governs the strength of the association by unleashing the discretion of top management teams (TMTs), while the direction of the association depends on the characteristics of TMTs. Accordingly, as slack increases, organizations led by TMTs characterised by high-risk preference pursue risky search initiatives more aggressively, while decisions by TMTs characterised with low-risk preference grow more risk-avoiding. Our empirical examination of the Japanese electronic appliances industry from 2006 to 2017 empirically supports the argument with endogeneity robust inference on the coefficient of the slack variable. Organisational slack alleviates concerns over constraints on decisions, thereby unleashing discretion to pursue as well as to avoid search risk-taking.

This study explores the influence of political risk on firms in the tourism industry. It addresses a research gap regarding the impact of political risk on firm-level performance and failure and uncovers the role of organizational slack in this relationship. Firm-level political risk is estimated from 2002 to 2019 financial data for firms across six tourism sectors in a developed economy, the United States. Such risk is found to be significantly associated with firm performance and business failure. From the perspectives of the resource-based view and the threat-rigidity hypothesis, the results support the moderating effects of absorbed and unabsorbed slack on links between risk, performance, and business failure. Given that the COVID-19 pandemic has highlighted the tourism industry’s vulnerability, this study will be of interest to tourism firms seeking to improve business sustainability and resilience.

Enterprise group is an important promoter to break the segmentation and achieve economies of scale. Technological innovation within the group is the key to improving market competitiveness, which has attracted common attention from academia and practitioners, but the decision-making mechanism of technology innovation in subsidiary is still needed. Based on the background of Chinese enterprises, through empirical analysis of panel data of 773 listed manufacturing companies for 5 consecutive years, we found: Parent-subsidiary executives’ synergistic allocation has a positive impact on the technological innovation of subsidiary; Parent-subsidiary executives’ synergistic allocation has a positive impact on the organizational slack of the subsidiary; The positive effect of executives’ synergistic allocation in parent-subsidiary corporations on the technological innovation of the subsidiary is realized by increasing organizational slack; Compared with private enterprise group, the positive influence of parent-subsidiary executives’ synergistic allocation on the technological innovation of subsidiary in state-owned enterprise groups is weaker; The longer the executive tenure is, the weaker the positive impact of organizational slack on technological innovation of subsidiary will be. On the one hand, this study enriches the theoretical research of technological innovation decision-making motivation; on the other hand, it provides empirical thinking for the improvement of parent-subsidiary executive collaborative governance mechanism and the improvement of governance efficiency.

This study aims to explore the differentiated influence of slack forms (high-discretion and low-discretion slack) on firms’ internationalization speed into diverse institutional environments. Specifically, this study examines firms’ internationalization speed into advanced economies (AEs) and emerging market and developing economies (EMDEs). This study also adds a discussion on internationalization from a focus on firm size, especially in its moderate influence on the relationship between organizational slack and internationalization speed. This study conducts a longitudinal analysis to examine the hypotheses using 5544 observations from 264 publicly listed Taiwanese manufacturing companies over a period from 2001 to 2022. This study finds that high-discretion slack accelerates internationalization into both AEs and EMDEs. While low-discretion slack hinders it in EMDEs. However, firm size moderates these relationships differently across environments. In AEs, larger firms experience greater benefits from high-discretion slack and are more negatively influenced by low-discretion slack. Conversely, in EMDEs, larger firms experience fewer benefits from high-discretion slack and are less negatively influenced by low-discretion slack. This study fills gaps by examining the interaction between firm size, organizational slack form and internationalization speed across different institutional environments. By combining RBV and information-processing perspectives, the study offers a deeper understanding of how firms meet information-processing demands in international expansion. It highlights the mechanism of how firms’ information-processing capacity, associated with firm size, affects the effectiveness of their employment of different forms of organizational slack in AEs and EMDEs. The findings provide practical insights for optimizing resource allocation and expansion strategies.

PurposeDeveloping technological capabilities to enhance innovation performance is essential for firms to respond to external changes and competition. Based on the effect of organizational structure on organizational capability development, this study assesses whether a specific R&D organizational structure design can be used to develop different technological capabilities.Design/methodology/approachCombining organizational theory and the resource-based view as an integrated view, we propose several contrasting hypotheses to show the effects of three general R&D organizational structure designs (centralized, decentralized, and hybrid) on developing exploitative and explorative capabilities. We propose R&D slack as a moderator. 82 Taiwanese listed manufacturing firms were selected. Data on the firms' annual reports and their patent applications to the Taiwan Patent Office from 2005 to 2017 were collected.FindingsFirms’ adoption of centralized and decentralized R&D structures has a significant positive effect on developing exploitative capability and an opposite effect on developing explorative capability. A high or low R&D slack can moderate the impact of R&D organizational structure on non-routine capability development.Research limitations/implicationsThis study concludes that R&D organizational structure affects the development of different technological capabilities and that the effect of R&D organizational structure on the development of technological capabilities can be changed under the moderation of R&D slack, which means that the possibility of developing different technological capabilities under the same organizational structure will increase.Practical implicationsThe top manager should consider the relationship between R&D structure design and technological capability development to manage the R&D routines to influence the generation of technological capabilities. Also, they must utilize the provision of R&D slack to modulate technological capability development.Originality/valueThis study reexamines the relationship between organizational structure and capability development. It shows that organizational structure can shape unique technological capabilities and that firms may be able to change structural elements through slack resources, enabling ambidexterity or dynamic capability development without organizational change.

This research examines the impact of leadership style and obedience pressure on budgetary slack, with organizational culture as a moderating variable. By employing a descriptive quantitative approach, the study investigates how these factors interact within organizations to influence the practice of intentional budgetary slack creation. A sample of 110 accounting students who have taken professional and business ethics courses was analyzed, providing significant insights into the dynamics between leadership, obedience pressure, and budgetary slack.   Objective: This research aims to determine the extent to which leadership style and obedience pressure influence budgetary slack and how organizational culture moderates this relationship. It seeks to contribute to understanding budget management within companies, particularly the factors that encourage or mitigate the creation of budgetary slack.   Theoretical Framework: This study is grounded in theories related to leadership styles, organizational culture, and budgetary practices. It examines the concept of budgetary slack within the framework of obedience pressure and leadership influence, highlighting the role of organizational culture as a potential moderating factor.   Method: The research adopts a descriptive quantitative method, with a population comprising all accounting students who have completed professional and business ethics courses. A total of 110 students were sampled for the study. Data were collected and analyzed to assess the relationships between leadership style, obedience pressure, budgetary slack, and the moderating role of organizational culture.   Results and Discussion: The findings indicate that obedience pressure and leadership style positively and significantly impact budgetary slack. Additionally, organizational culture was found to moderate the relationship between leadership style and budgetary slack. However, it does not moderate the impact of obedience pressure on budgetary slack. These results are discussed in the context of existing theoretical frameworks and previous studies.   Research Implications: This study offers practical and theoretical implications for understanding and managing organisational budgetary slack. It highlights the importance of considering organizational culture and leadership style to control or leverage budgetary slack for organizational benefit. This research contributes to the literature by exploring the moderating role of organizational culture in the relationship between leadership style, obedience pressure, and budgetary slack. It provides new insights into how organizational dynamics influence budget management practices, offering valuable implications for both academic research and practical management.   Originality/Value: This research contributes to the literature by exploring the moderating role of organizational culture in the relationship between leadership style, obedience pressure, and budgetary slack. It provides new insights into how organizational dynamics influence budget management practices, offering valuable implications for both academic research and practical management.

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This research analyzes the relationship between the impact of organizational slack on patent productivity as a proxy for innovation and the resulting firm performance by longitudinally investigating 114 U.S. firms. The role of slack as a moderated measure of innovation was also explored, with its impact on technology and non-technology industry firms compared. In study one, the evidence concluded that slack is positively correlated with innovation productivity, but the company type was not statistically significant. In addition, the study did not find an inversion in the relationship between slack and innovation that would produce a negative correlation as the level of slack in firms reaches a tipping point. Study two demonstrated a positively correlated relationship between the rate of innovation and firm growth. The presence of slack positively moderates this relationship, and this moderation effect increases for technology companies.

This research aims to analyze the influence of organizational justice on budget slack, along with the moderating role of budget emphasis in the functional relationship between these two variables. The study sample includes 366 officer from local government units in the province of Aceh, Indonesia. Data collection was conducted through questionnaires, and the data analysis model employed moderated regression analysis. The findings reveal that organizational justice has a significant and negative impact on budget slack. Moreover, budget emphasis not only exhibits a negative influence on budget slack but also moderates the impact of organizational justice on budget slack. The negative influence of organizational justice on budget slack increases with the rise in budget emphasis.

EXECUTIVE SUMMARY Financial distress is a persistent problem in U.S. hospitals, leading them to close at an alarming rate over the past two decades. Given the potential adverse effects of hospital closures on healthcare access and public health, interest is growing in understanding more about the financial health of U.S. hospitals. In this study, we set out to explore the extent to which relevant organizational and environmental factors potentially buffer financially distressed hospitals from closure, and even at the brink of closure, enable some to merge with other hospitals. We tested our hypotheses by first examining how factors such as slack resources, environmental munificence, and environmental complexity affect the likelihood of survival versus closing or merging with other organizations. We then tested how the same factors affect the likelihood of merging relative to closing for financially distressed hospitals that undergo one of these two events. We found that different types of slack resources and environmental forces impact different outcomes. In this article, we discuss the implications of our findings for hospital stakeholders.

The aim of this research is to analyze the influence of budget participation, asymmetric information and organizational commitment on the budget gap with budget emphasis as a moderating variable in the Langkat Regency Government. Data were collected through questionnaires to structural officials who carry out budgeting in 56 OPDs in Langkat Regency, totaling 224 people selected using the purposive sampling method and 212 questionnaires filled in from the research from January to April 2024,The analysis method uses SEM based on the SmartPLS Version 4.1 variant. The research instrument has passed the validity and reliability test. The research results show that budget participation, asymmetric information and organizational commitment have a significant positive effect on the budget gap, budget participation becomes significantly negative on the budget gap, when budgetary emphasis moderates the relationship between the two, while information asymmetry and organizational commitment are not significantly related to the budget gap when the emphasis is on budget gaps. Budget as a moderating variable.

Slack resources and organizational learning are key elements in building organizational resilience. This paper constructs an impact model of organizational resilience and investigates the impact of slack resources on organizational resilience using data from Chinese-listed companies, as well as verifying the moderating effect of organizational dual learning through hierarchical analysis. The findings show that: Firstly, both absorbed slack resources and unabsorbed slack resources promote organizational resilience. Secondly, organizational learning has a moderating effect on the relationship between slack resources and organizational resilience, where organizational exploitative learning positively moderates the relationship between unabsorbed slack resources and organizational resilience, while organizational exploitative learning negatively moderates the relationship between absorbed slack resources and organizational resilience. Accordingly, organizations should pay attention to the composition of slack resources and the coordination between slack resources and organizational dual learning in order to improve organizational resilience.

This study aims to analyze the effect of investment decisions, capital structure, company size on profitability and Sustainable Growth, with profitability as a mediating variable and Financial Flexibility as a moderating variable. Data is obtained from secondary sources, namely audited financial reports from heavy construction and civil engineering subsector companies listed on the Indonesia Stock Exchange (IDX) for the 2019-2023 period. The analysis was carried out using Structural Equation Modeling based on Partial Least Squares (SEM-PLS). The results showed that investment decisions, capital structure, and company size have a significant effect on profitability. However, only company size has a significant effect on Sustainable Growth. Investment decisions and capital structure have no significant effect on Sustainable Growth. Profitability also has an insignificant effect on Sustainable Growth and does not mediate the relationship between variables. In addition, financial flexibility does not moderate the relationship between profitability and sustainable growth. This finding indicates that increased profitability is more influenced by investment strategy, capital structure, and firm scale, but does not necessarily translate directly into Sustainable Growth.

Purpose: This study aims to explore the factors that influence the capital structure of consumer non-cylical companies listed on the Indonesia Stock Exchange (IDX) for the period 2017-2023 which is influenced by financial flexibility and earning volatility. Methodology/approach: This research uses a quantitative approach with the Generalized Method of Moments (GMM) method using the tool e-views 12. Using purposive sampling technique to collect observation data of 53 companies and obtain 371 samples. GMM method is applied to analyze the dynamic relationship between firm characteristics and capital structure decisions, by considering the possibility of endogeneity in the model. Findings: This study found that financial flexibility variables have a positive effect on capital structure, while Earning volatility has no effect but has a positive and negative impact on the capital structure of consumer non-cyclical companies listed on the Indonesia Stock Exchange for the period 2017-2023. Practical implications: These findings can help managers make more informed decisions regarding capital structure, particularly in aligning financing strategies with firm characteristics and market conditions. Originality/value: This study provides new insights into the capital structure choices of Indonesian non-cyclical consumer firms, with the application of the GMM method to address endogeneity in the analysis, which has not been widely studied in the context of emerging markets

This study investigates how listed firms cultivate and deploy financial flexibility as they dynamically adjust toward target capital structures. Using a balanced panel of 1,200 non-financial firms from 2010 to 2024, we construct a composite flexibility index based on cash reserves, net debt capacity, and equity issuance potential. Through dynamic panel estimations, we find that firms close approximately 32.4% of their leverage gap annually on average, with adjustment speeds varying significantly by flexibility level and composition. High-flexibility firms adjust faster (mean 39.7%) and more consistently, while cash-dominant firms exhibit the highest stability in leverage correction. Flexibility composition also shifts across firm life-cycle stages: early-stage firms rely on cash (49.54%) and equity issuance (20.32%), while mature firms depend more on net debt capacity (54.37%). Moreover, during macroeconomic shocks such as COVID-19, high-flexibility firms sustain higher capital expenditure levels and suffer smaller declines in adjustment speed. These findings confirm that financial flexibility is not only a buffer against shocks but also an active accelerator of structural rebalancing. The study highlights flexibility as a path-dependent capability that evolves with firm maturity and governance, offering insights for capital strategy under uncertainty. Implications extend to managers and policymakers seeking to enhance resilience without compromising growth trajectories.

The acceleration of global economic integration has led to an increasingly uncertain external environment for Chinese enterprises, which are therefore required to master financial flexibility and capital structure. These are two of the basic elements in the corporate financial decision-making field, and their mastery will enable enterprises to survive and develop in this environment. The objective of this paper is to examine the relationship between financial flexibility and capital structure and to explore the potential applications of this relationship in the context of Chinese listed companies. A sample of Chinese listed companies across various industries, spanning the period from 2011 to 2021, has been obtained from the CSMAR database and used to conduct a series of statistical analysis. The software Stata has been employed to perform benchmark regression analysis, heterogeneity testing, and robustness testing on endogenous variables associated with capital structure and financial flexibility in order to gain insight into their respective influences. The results of the charts demonstrate a significant impact of financial flexibility on capital structure. In particular, there is a significant positive impact on debt structure, while growth opportunities have a negative impact. This paper indicates that firms should utilise their debt structures in a rational and strategic manner, and adjust their growth opportunities to enhance their competitive edge.

PurposeCapital structure is an important factor for the company because it will be directly related to the financial condition of the company. This study aims to determine the effect of asset structure, earning volatility, and financial flexibility on capital structure.Design/methodology/approachThe population in this study was 52 companies in the consumer goods industry sector on the Indonesia stock exchange (IDX) and a sample of 39 companies obtained by purposive sampling method. The research method used in this study is multiple linear regression analysis using Eviews software.FindingsThe test results in the study show that asset structure and financial flexibility have a positive effect on capital structure, while earning volatility does not affect capital structure in companies in the consumer goods industry sector on the IDX.Research limitations/implicationsThe results of this research can contribute to the addition of knowledge in the field of accounting, especially regarding the capital structure. Company management can use the results of this research as a reference and consideration to find out the factors that affect the capital structure so that company management can still maintain the company's survival and improve company performance.Practical implicationsThe results of this study can contribute to the addition of knowledge in the field of accounting, especially regarding capital structure. Company management can use the results of this research as a reference and consideration to determine the factors that affect the capital structure so that company management can still maintain the survival of the company and improve company performance.Social implicationsThis study only uses the variables of asset structure, financial flexibility and earning volatility as independent variables. Further research is recommended to consider the use of other variables that can affect capital structure and if using the same variable is expected to use research objects that have stable or increasing asset and income values, so that asset structure variables and profit volatility can show significant results and influences.Originality/valueThis study is one of the few studies that examines how the effect of asset structure, profit volatility and financial flexibility on capital structure in companies in the consumer goods industry sector on the IDX. Company management must pay attention to the composition of the capital structure as well as possible and make careful planning and the right decisions so as to produce a capital structure that can provide profits.

Financial flexibility demonstrates the company’s financial ability in handling uncertain situations, especially during the Covid-19 pandemic. The purpose of this study were to test and analyze the impact of financial flexibility towards the company’s liquidity with capital structure as the intervening variable. Applying quantitative method, the study took samples from companies listed in the Indonesian Stock Exchange in the period of 2020 and 2021 during the Covid-19 pandemic and examined the impact towards company’s liquidity. Results demonstrated that financial flexibility indeed influences company’s liquidity; the flexibility, however proves to be insignificant to the capital structure.

The capital structure of every company is a critical concern. Capital structure affects a company’s financial status. Financial flexibility, internal company conditions, market conditions, operating leverage, the perspective of lenders and rating agencies, management perspectives, controls,taxes, profitability (lity,afinancialcture, and sales stability) are some of the variables typically taken into account by cperspectivesgement when making decisions about capital structure. The purpose of this study is to ascertain how asset structure, earnings volatility, and financial flexibility impact capitaconsideredmpanies from the consumer products industry sector listed on the Indonesia Stock Exchange. population of this study, and 39 companies were chosen as the sample using a purposive sampling technique. Multiple linear regression analysis utilizing the Eviews program was used in this study. The probability value of the asset structure is 0.0107 0.05, and its positive directional regression coefficient is 0.169937. A positive direction regression coefficient of 0.074237 and a prob value of 0.84246 > 0.05 are both present for earnings volatility. The b-value for financial flexibility is 0.00326 (less than 0.05), and the positive regression coefficient is 0.259236. In conclusion, while earnings volatility has no influence on capital structure, financial flexibility and asset structure variables have beneficial impacts. By examining these aspects, this research is anticipated to help the decision-making process for the growth of a company.

No abstract available

This study examines the impact of financial flexibility, business risk and moderating effect of firm size on the capital structure of listed manufacturing companies in Indonesia Stock Exchange for 2017 to 2019. The proxies for the financial flexibility are earning to total capital ratio, cash holding, operating cash flow to value ratio, and dividend pay-out ratio. Analysis used panel data regression models and moderated regression analysis (MRA) . The results of the study indicate that financial flexibility which is measured by earning to total capital ratio has a negative and significant effect on capital structure. Meanwhile, financial flexibility which is measured by cash holding, operating cashflow to value ratio, and dividend pay-out ratio, have no significant effect on capital structure. Business risk has no significant effect on capital structure as well. F irm size as a moderating variable does not moderate the effect of financial flexibility and business risk on capital structure .

Transportation and logistics companies in Indonesia face significant challenges in maintaining capital stability, especially after the COVID-19 pandemic. The volatility in earnings and the increasing importance of intangible assets like goodwill have raised questions about their impact on capital structure. This study aims to examine the influence of goodwill assets, earning volatility, and financial flexibility on capital structure, with financial market development as a moderating variable. A quantitative research method was employed using panel data regression and moderated regression analysis. The study analyzed 120 observations from 20 companies listed on the Indonesia Stock Exchange between 2018 and 2023. Results indicate that goodwill assets and earning volatility do not have a significant effect on capital structure, while financial flexibility shows a strong and consistent influence. Furthermore, financial market development does not significantly moderate the relationship between goodwill and capital structure. These findings suggest that internal financial strategies, particularly enhancing financial flexibility, are more impactful than intangible assets in shaping capital structure decisions in this sector. Future research should explore additional moderating variables, such as governance quality or investor sentiment, and conduct cross-sectoral comparisons to generalize findings.

This paper deeply discusses how Tesla's strategic layout in the carbon credit mechanism and clean energy sector caters to the market's ESG standards from the three key perspectives of green finance, capital structure optimization, and financial stability. This paper mainly reveals the contribution rate of carbon credit income in the marginal growth of net profit by constructing a regression analysis model. It is further confirmed that interest-free and low-interest income is essential in capital structure optimization for stabilizing corporate finance and providing reliable cash flow. Meanwhile, SolarCity's upstream and downstream layout in clean and photovoltaic energy has enhanced Tesla's control over resources and the supply side, as well as its stable distribution and bargaining power in the downstream sales market. This paper finally proposes Tesla's competitive position in sustainable development by comparing two sustainable cases in size and synergies. It is solidified by enhancing financial flexibility, improving risk resistance, and accelerating the company's low-carbon transformation through innovation.

This study explores the capital structure decisions of non-financial firms listed on the Pakistan Stock Exchange (PSX-100), focusing on how macroeconomic volatility, regulatory reforms, and firm-specific determinants influence leverage. Using panel data from 50 non-financial firms spanning 2014–2023, the study employs fixed-effects regression to isolate the effects of profitability, firm size, growth opportunities, and non-debt tax shields (NDTS) on leverage ratios. Findings confirm that profitable firms prefer internal financing over debt, aligning with pecking order theory, while larger firms demonstrate higher leverage, consistent with trade-off theory. Growth-oriented firms tend to avoid debt to preserve flexibility, while firms with substantial NDTS reduce reliance on debt due to internal tax benefits. The analysis incorporates macroeconomic shocks such as currency depreciation and evolving financial regulations, highlighting their impact on firms' refinancing decisions. Additionally, the study evaluates the role of environmental, social, and governance (ESG) factors, demonstrating that ESG-compliant firms experience better capital access and lower financial constraints. These insights contribute to a comprehensive understanding of capital structure in emerging markets, offering practical implications for policymakers, corporate managers, and financial regulators seeking to balance financial stability with strategic financing choices in a rapidly evolving economic environment.

In the context of growing economic uncertainty, capital structure optimization is becoming a critical tool for minimizing financial risks, providing companies with the necessary stability and adaptability in modern conditions. This paper aims to develop theoretical foundations for the existing capital structure optimization methods and elaborate an optimal capital structure formation strategy to ensure companies’ financial stability and flexibility in conditions of high financial uncertainty. The article offers a stabilization-flexible approach to optimizing companies’ capital structure in financial instability and crises, making it possible to ensure the companies’ financial stability while preserving their ability to adapt to a volatile environment quickly. The main idea of the approach is the balanced use of equity capital and long-term and short-term liabilities to finance various components of assets, which helps to minimize risks and increase the efficiency of financial management. A roadmap for the implementation of the stabilization-flexible approach to optimizing the capital structure has been formed, the basis of which is the construction of a logical chain of actions, including the definition of companies’ goals, the assessment of available financial resources and risks, and the development of financing strategies, their implementation, further control and monitoring of results. The study results can be helpful for financial managers, analysts, and investors seeking to improve the efficiency of capital management and reduce the impact of external and internal risks on the financial condition of companies.

This research is aimed to analyze the effect of effective tax rate, firm size, liquidity, financial flexibility, asset structure, growth opportunities, risk, profitability, asset utilization ratio, and ownership structure on capital structure. The theory used in this research is trade-off theory and pecking order theory. The data source in this research is the annual financial reports of non-financial companies listed on the Indonesia Stock Exchange (IDX) for the period 2017-2020. The sample selected using purposive sampling method. The results of this research indicate that the effective tax rate has a negative and insignificant effect on capital structure. Firm size, asset structure, and growth opportunities have a significant positive effect on capital structure. Liquidity, financial flexibility, profitability, and electoral structure have a significant negative effect on capital structure. Risk and asset utilization ratio have positive and insignificant effect on capital structure.

The study objects for determining the most important firm specific factors affecting the corporate financial flexibility of the listed manufacturing firms at Amman Stock Exchange. Firm specific factors including, profitability, assets tangibility, cash holdings, and retained earnings, are taken into consideration, as possible internal determinants of corporate financial flexibility. To achieve the objectives of the study, secondary data covering the period 2013-2021, of 40 listed manufacturing listed firms at Amman Stock Exchange, had been collected and used in the analysis and hypotheses testing. Employing both of the simple and linear regression methods in hypotheses testing, and at the individual level of independent variables, the result reveals a significant impact of profitability, assets tangibility, cash holdings, and capital structure, and insignificant impact of retained earnings, on corporate financial flexibility. Moreover, a combined grouping significant impact, the result shows for the different firm specific factors, as a single group, on financial flexibility. The study recommends more investigations regarding financial flexibility and its internal and external macroeconomic determinants.  

: Financial flexibility and cash dividend payment behavior are important issues in corporate financial decision-making, which directly affect corporate capital structure, financing strategy and shareholder return. The nature of property rights, as a key factor in the internal governance structure of enterprises, determines the financial decisions of enterprises to a large extent. There are significant differences between state-owned enterprises and private enterprises in ownership structure, governance mechanism and position in capital market, which lead to their different performance in financial flexibility and cash dividend payment. It is of great theoretical and practical significance to study the effect of property rights difference on financial flexibility and cash dividend payment. Further marginal effect analysis shows that the impact of property rights differences varies in different market environments. Under the background of higher capital market opening degree, private enterprises have greater financial flexibility and dividend payment adjustment space, while state-owned enterprises are subject to more policy and capital market constraints and have less adjustment space. This study provides a new perspective for the financial decision-making of enterprises, and suggests that the government should reduce the intervention of state-owned enterprises and promote their financial flexibility. Private enterprises should reasonably adjust the dividend payout ratio to balance the return of shareholders and sustainable development. Promoting the mixed ownership reform of soes will help improve their financial flexibility and dividend payment ability.

No abstract available

This study aims to analyze the dynamics of working capital, profitability, and capital structure, and their implications for corporate sustainability in the context of effective tax rates. Corporate sustainability has become increasingly important in an era of global competition and stringent regulations. A review of the literature indicates that well-managed working capital can enhance profitability and provide financial flexibility, while an optimal capital structure contributes to the financial stability of the firm. Furthermore, effective tax rates play a crucial role in determining a company's profitability and investment decisions. This research identifies a gap in the existing literature, as few studies integrate these three factors within the framework of sustainability. By employing a comprehensive analytical approach, this study seeks to provide deeper insights into how the dynamics of working capital, profitability, and capital structure interact to support corporate sustainability. The findings are expected to make a significant contribution to financial management practices and sustainable corporate policies.

PurposeBuilding on the pecking order theory of capital structure and financial flexibility arguments, this paper examines the relationship between a firm’s investment horizon and capital structure. The firm’s investment horizon is viewed as a measure of the firm’s temporal orientation and thus reflects the extent to which the resource-allocation process is long-term or short-term oriented.Design/methodology/approachWe propose that firms with longer investment horizons rely more on external financing due to lower intermediate cash flows, but at a certain threshold, they rebalance their capital structure. Using panel data from 947,477 European firms (2018–2023), we test this hypothesis.FindingsResults confirm a quadratic, inverted U-shaped relationship between investment horizon and financial leverage. The COVID-19 crisis influenced this relationship by shifting the rebalancing threshold.Practical implicationsManagers must balance long-term investment needs with financial flexibility, while policymakers should support firms in sustaining long-term strategies during economic downturns.Originality/valueThe paper extends classic corporate finance models of capital structure by integrating explicitly the importance for managers to maintain financial flexibility in the form of untapped debt capacity.

This study empirically examines the dual impact of capital structure on corporate green innovation, focusing on the "quantity-efficiency paradox" in Chinese A-share non-financial firms (20002023). Leveraging panel data and robust econometric models, we find that higher leverage ratios significantly increase green innovation output (measured by patent applications) but simultaneously reduce efficiency (patent-to-revenue ratio). This paradox arises because debt financing expands R&D scale yet distorts resource allocation, undermining commercialization efficacy. Mechanism tests reveal that R&D intensity mediates the positive effect of leverage on innovation output, while diminished financial flexibility exacerbates efficiency losses. Heterogeneity analysis shows state-owned enterprises (SOEs) experience stronger output gains but steeper efficiency declines compared to private firms, attributed to SOEs policy advantages but bureaucratic inefficiencies. Our findings advance green innovation theory by decoupling its dual dimensions and highlighting capital structures conflicting roles. Practically, the results urge firms to balance debt levels with financial flexibility to optimize green innovation. Policymakers should incentivize R&D investments while improving financing mechanisms to mitigate efficiency trade-offs. Robustness checksincluding alternative proxies, fixed effects, and subsample analysesconfirm result reliability. This study bridges corporate finance and sustainability literature, offering actionable insights for achieving both scale and efficacy in green transitions.

Introduction/Main Objective: This study presents research that makes a theoretical contribution to the literature on the achievement of sustainable development goals (SDGs), and provides empirical evidence of the role of corporate governance (CG), type of ownership, and capital structure of companies in Indonesia in achieving the SDGs. Background Problem: This research is motivated by the phenomenon that the business sector plays major roles in economic growth, damage to the natural environ­ment—as well as its preservation—well the social life of local and global communities. The active involvement of the business world is needed to support the achievement of the SDGs. This research is important because the president directors and president commissioners (as proxies for CG) are the parties that play the biggest roles in their companies in achieving the SDGs. In addition, owners can pressure directors and commissioners to commit to achieving SDGs. A capital structure that reflects the company's financial flexibility also plays a role in realizing the SDGs. Novelty: This research uses unique proxies for the SDGs and CG variables. The SDGs are proxied using the SDG index, covering 17 SDGs fields, consisting of 101 items.CG is proxied by the competence of president directors and president commissioners. Competence is measured by level of education, work experience, and global insight. In addition, research examining the effect of the four types of ownership and capital structure on the SDGs is still very limited. This research was conducted on all companies listed on the Indonesia Stock Exchange during the period 2017 to 2021. The samples were taken purposively, with certain criteria. The dependent variable is SDGs, while the independent variables are CG, type of ownership, and capital structure. The analysis technique uses multiple linear regression. Findings/results: The research proves that the president commissioner, government, and individual shareholders, as well as leverage have a significant positive effect on SDGs disclosure. Meanwhile, domestic institutional share­holders, capital structure, and company size negatively affect SDG’s disclosure. Conclusion: The results show that the president commis­sioner, government, and individual shareholders become the key shareholders who significantly affect the company’s SDG disclosure policy. Thus, the results confirm and support the stakeholder theory and stewardship theory.

: This paper examines the capital structure optimization strategies of Apple and Tesla, two leading technology companies, to understand how they maximize profits through strategic financial management. The study aims to uncover the underlying principles that contribute to their financial success and market dominance. The research finds that Apple’s low equity-debt ratio, high credit rating, and reliance on equity funding support its stable financial position and innovation-driven growth. In contrast, Tesla’s journey from high-risk early-stage financing to later-stage optimization through vertical integration and cost reduction highlights the importance of strategic pivots in capital structure management. Both companies demonstrate the significance of balancing debt and equity to achieve financial flexibility and sustainability. The study concludes that a well-optimized capital structure is crucial for corporate profitability and resilience. It suggests that tailoring firm’s capital structures to align with its growth stages and market conditions is crucial for the firm to maximize profit. For investors, understanding these strategies can provide insights into evaluating company financial health and potential returns. For corporate leaders, the findings emphasize the need for dynamic capital structure management to support innovation and long-term growth.

Capital structure refers to the proportional relationship between various long-term funding sources of an enterprise. A reasonable capital structure that can meet the funding needs of the enterprise while balancing risks and benefits, maximizing the value of the enterprise. However, due to the differences in the industrial environment, market environment and their own business conditions where enterprises are located, it is difficult to determine the optimal capital structure. This article selects Chinese A-share listed companies from 2014 to 2023 as the research object. By collecting annual report information and using a fixed effects model for empirical testing, it is found that there is an inverted U-shaped relationship between capital structure and enterprise value. A reasonable capital structure can provide a stable source of capital for enterprises, reduce financial risks, enhance investment flexibility and autonomy, thereby maximizing the value of the enterprise. On the contrary, if a company’s capital structure is unreasonable, the debt ratio is too high, debt pressure is high, and the financial risks are high, its investment decisions will be subject to many constraints, which will hurt the company’s value.

This study evaluates the capital structure efficiency (CSE) of green micro, small, and medium enterprises (MSMEs) in India, employing a hybrid approach combining Data Envelopment Analysis (DEA) and Gene Expression Programming (GEP). The research aims to assess the efficiency levels across different MSME categories, identify significant determinants of CSE, and develop predictive models to enhance financial decision-making. The study addresses key questions on the current efficiency levels, influential factors, and the effectiveness of various predictive models in forecasting CSE. Utilizing data from the CMIE Prowess database, the analysis reveals that micro-sized green MSMEs exhibit higher capital structure efficiency compared to medium and small enterprises due to lower operational costs and greater flexibility in decision-making. Significant factors influencing CSE include the Debt-to-EBITDA ratio, Debt-to-Asset Ratio, and Return on Equity. Comparative analysis shows that the DEA-GEP model consistently outperforms other models, particularly in predictive accuracy and reliability, as validated by Monte Carlo simulations. Key findings suggest that efficient debt management and profitability enhancement are crucial for improving CSE in green MSMEs. This research contributes to the theoretical understanding of capital structure in sustainable enterprises and offers practical implications for managers and policymakers to foster financial and environmental sustainability.

The post-COVID-19 pandemic period of 2021–2023 has brought significant changes to the business world, including the food industry, which had previously been considered relatively stable and resilient to crises. This situation requires companies to adopt adaptive financial management, particularly in terms of capital structure. Capital structure, the balance of debt and equity funding, is a strategic aspect that determines a company's ability to maintain liquidity, operational flexibility, and profit stability. This study aims todetermine the effect of capital structure on business risk infood companies listed on the Indonesia Stock Exchange in the post-pandemic period.Business risk is measured using the EBIT Variation Coefficient, while capitalstructure is measured using the leverage ratio. The analysis is conducted usinglinear regression with a series of classical assumption tests. The results show thatcapital structure has a positive and significant effect on business risk. The results of thet-test indicate that capital structure has a significant effect with a t-value of1.902 and a significance value of 0.023. The F-test also shows that the regression model issignificant with a significance value of 0.002, making the model suitable for use.Meanwhile, the coefficient of determination R² value of 0.195 shows thatcapital structure can explain 19.5% of business risk, while the rest isinfluenced by other factors outside the model. This finding confirms that the higherthe level of debt usage, the greater the risk of EBIT fluctuations that must beborne by the company.

This study examines the impact of capital structure on the corporate performance. The findings on different industries like capital-intensive, labor-intensive, and technology and healthcare indicate that low leverage companies operate with greater capital flexibility and with reduced financial risk, but their ability to grow and expand will be constrained by a lack of sufficient funding. Highly leveraged businesses use money more efficiently, but they also carry a larger financial risk. The capital structures of the technological and medical sectors change at different phases. Typically, this innovative industry's substantial capital investment carries a considerable danger of financial strain in addition to the possibility for large reward. For different markets, developed countries' capital structures and impact are like those of low-leverage businesses, whereas developing countries' capital structures and impact are like those of highly leveraged sectors. Furthermore, it examines China and Vietnam among developing countries, considering their distinct features within the same market. China and emerging nations have comparable traits, but Vietnam depends more on retained earnings for development like developed countries, which reduces financial strain and risk but has an impact on the growth and development of businesses.

This paper mainly studies the impact of capital structure on enterprises. To gain a deeper understanding of this issue, this paper chose different sectors, such as capital-intensive and labor-intensive industries, which rely heavily on debt financing but face higher financial risks during a recession. This is in stark contrast to labor-intensive industries. In labor-intensive industries, equity financing may be more conducive to the operational flexibility and adaptability of enterprises. Find out the corresponding literature analysis, and summarize the commonness through concrete examples. The paper discusses the characteristics of capital structure of developed and developing countries and compares the differences of capital structure in different economic environments. Through the study of relevant literature, the characteristics and differences of capital structure in different industries and countries are summarized. Identifies areas for improvement, pointing out limitations in the current understanding of capital structures, such as industry-specific differences and changing market dynamics. At the same time, according to the characteristics of the industry, market conditions and risk tolerance, to provide constructive advice for enterprises to optimize the capital structure.

The banking sector plays a crucial role in the Indonesian economy, becoming the backbone that supports the country's economic growth and stability. In this dynamic landscape, two financial institutions stand out, namely Bank Rakyat Indonesia (BRI) as a representative of conventional banks, and Bank Syariah Indonesia (BSI) which is committed to Islamic financial principles. The purpose of this study is to determine the comparison of capital structure, profitability, and third party funds (DPK) between BRI banks and Indonesian Islamic banks. This research method uses the Mixed Methods Comparative method, this approach involves the collection and analysis of quantitative and qualitative data separately and at the same stage. The results of this study show that  the comparative analysis between Bank BRI and Bank Syariah Indonesia (BSI) highlights the different dynamics in the capital structure, profitability, and deposits of both. BRI, with its conventional approach, demonstrates flexibility and excellence in diversifying financial resources. On the other hand, BSI, as an Islamic bank, provides evidence that Islamic principles can provide profitability and a sustainable financial foundation. These results provide a better understanding of each bank's role in meeting the needs of society, both in terms of financial services and business ethics principles. Stakeholders, including regulators, investors, and the general public, can use the results of this analysis to make informed decisions and support the sustainable growth of the banking sector in Indonesia.TRANSLATE with x EnglishArabicHebrewPolishBulgarianHindiPortugueseCatalanHmong DawRomanianChinese SimplifiedHungarianRussianChinese TraditionalIndonesianSlovakCzechItalianSlovenianDanishJapaneseSpanishDutchKlingonSwedishEnglishKoreanThaiEstonianLatvianTurkishFinnishLithuanianUkrainianFrenchMalayUrduGermanMalteseVietnameseGreekNorwegianWelshHaitian CreolePersian //  TRANSLATE with COPY THE URL BELOW Back EMBED THE SNIPPET BELOW IN YOUR SITE Enable collaborative features and customize widget: Bing Webmaster PortalBack//

Over the past two decades, there has been a surge in digital innovation. China is the world’s second-largest digital economy entity and the national strategy to build a digital China is in full swing. Chinese enterprises have received great support while pursuing digital transformation. This study aims to explore the impact of digital transformation on firm dynamic capital structure adjustment by taking evidence from Chinese listed firms. Based on the data of 3855 Chinese A-share listed firm-year observations during 2011–2021, this study employed a panel data fixed effects model to ascertain the association between the proposed variables. The results indicate that digital transformation has a significant positive effect on accelerating capital structure adjustment speed. Furthermore, we show that digital transformation promotes dynamic capital structure adjustment through financial flexibility. The impact of digital transformation on dynamic capital structure adjustment is characterized by heterogeneity in the ownership type, asset size, and credit cycle. In addition, reduced financing constraints and growing economic policy uncertainty will moderate the relationship between digital transformation and dynamic capital structure adjustment. Our findings provide insights into how digital transformation is driving companies to accelerate their capital structure adjustment speed to the optimal, and supplements the existing literature on the determinants of dynamic capital structure adjustment.

This study examines the implementation of Musyarakah Mutanaqisah (MMQ) as a financing instrument for working capital and productive property in Islamic Financial Institutions (IFIs). Unlike conventional financing, MMQ offers a dynamic ownership transition mechanism that allows customers to gradually acquire full ownership of financed assets while sharing profits and risks with the bank. The research employs a qualitative approach through an analytical review of scholarly literature and publications from IFIs, focusing on the operational structure, benefits, and challenges of MMQ. The findings highlight that MMQ provides greater flexibility compared to other Sharia-compliant contracts such as Murabahah and Ijarah Muntahiyah Bi Tamlik, as it enables customers to secure assets while mitigating financial burdens through staged payments. MMQ proves to be a viable solution for business actors and property investors, offering an equitable risk-sharing model and a structured path toward ownership. The study also underscores the importance of financial literacy and strategic marketing in enhancing MMQ adoption, emphasizing the role of digital platforms and personalized consultation in promoting its benefits. The results suggest that optimizing MMQ for productive financing can strengthen the Islamic banking sector and expand financial inclusion for businesses. Further empirical research is needed to measure MMQ’s long-term impact on business sustainability and financial stability.

Microfinance Institutions (MFIs) services and activities in Kenya have helped the country reduce its poverty rate, but the country is still among the poorest in the world. Microfinance institutions in Kenya have also reported capital risk in terms of pricing since they have less flexibility to adjust prices due to their financial structure. The main objective of the study is to establish the influence of capital risk on the financial performance of microfinance institutions in Kenya. The study used a descriptive survey research design with a target population of 12 MFIs listed under the Central Bank of Kenya (CBK). The study used a census approach to sample the entire population. The study used secondary data from published CBK reports over a 7-year period from 2015 to 2021. Descriptive statistics are comprised of skewness, kurtosis, and jarque bera. Inferential statistics used were Pearson correlation and hierarchical regression. A study on financial risk factors and financial performance may be of value to the government in policy formation. The microfinance act policy formulators can use the study to ascertain contagious issues that need to be addressed, especially how to handle capital risk challenges. The study may assist the management of microfinance institutions in establishing the problems facing financial risk factors in their sector. Capital risk had a significant positive effect on the financial performance of the Nairobi Securities Exchange in Kenya (t =0.0346763, p<0.05). This model produced an R square of 0.378, implying that 3.78% of the variation in the risks of microfinance institutions is significantly affected by capital risk. Regarding microfinance size, the incorporation of IV*MV, thus interaction terms, moved R squared from 0.337 to 0.378, hence an increase of 0.041. The P value of 0.024 and an R squared increase of 0.041 shows that microfinance size has a moderatingly significant effect on the relationship between capital risk and the financial performance of microfinance institutions. The study rejected the null hypothesis. The findings guided the following recommendations: It was found that capital risk has a significant impact on financial performance; hence, microfinance firms should improve their assets so as to minimize the risks associated with their capital base.

The The purpose of this study is to analyze the effect of capital structure on financial performance in Beninese companies. To achieve this, we adopted a mixed methodological approach. Data collected from 32 executives and department heads from 13 companies operating in the Atlantic department of Benin were processed using Nvivo12 software and analyzed using systematic thematic coding. This approach made it possible to identify the main motives,practices, and perceptions relating to capital structure and to establish explanatory links with financial performance. The results show that equity capital is the most decisive factor, providing companies with financial stability and increased self-financing capacity.Internal debt also appears to be an essential strategic lever, facilitating cash flow flexibility and supporting operational activities. Finally, external debt, although less influential, is perceived as a complementary instrument for financing growth projects and accelerating organizational development.

The article examines current trends and features of financial support for publishing industry enterprises amid economic instability, digital transformation, and the war-related impact on the market. Internal and external factors determining the financial stability of publishing enterprises are analyzed, including management efficiency, marketing strategies, technological infrastructure, capital structure, market demand, government support, international integration, and the sociocultural significance of products. Special attention is given to prospective instruments for attracting financial resources, such as crowdfunding, venture investments, grant and government programs, digital platforms, corporate sponsorship, international partnerships, as well as alternative mechanisms for micro-investing and content licensing. It is determined that the combination of traditional and innovative funding sources ensures flexibility, stability, and competitiveness of enterprises in modern conditions, allowing for cost optimization, increased product profitability, the formation of anti-crisis financial strategies, and the integration of Ukrainian publishers into the global book market. Both international and domestic experiences are generalized, enabling the development of adaptive financial strategies that consider national specifics, cultural value of products, and contemporary global challenges. It is shown that digitalization of publishing processes, the development of electronic and audiobooks, demand analytics, and the integration of marketing and financial strategies are key factors in enhancing financial efficiency. The research results may serve as a basis for efficient financial management in the publishing sector, ensuring sustainable enterprise development, strengthening their sociocultural role, and supporting the country’s cultural sphere.

This study investigates the impact of key financial determinants—liquidity, leverage, and firm size—on firm performance within the UK’s aerospace and defense sector. While existing literature acknowledges the roles of these factors, their combined effects remain underexplored. This study also introduces the equity-to-total-assets ratio as a control variable to account for capital structure stability. A panel data analysis was performed using financial data from seven publicly listed aerospace and defense firms in the UK, covering the period from 2008 to 2023. The Random Effects Model (REM) was utilized to estimate the impact of liquidity, leverage, and firm size on firm performance, measured by return on assets (ROA). Additionally, panel co-integration tests were conducted to evaluate long-run equilibrium relationships among the variables. The results show that liquidity significantly enhances firm performance (β = 1.3782, p < 0.05), indicating sufficient liquid assets improve operational flexibility. Conversely, leverage negatively impacts performance (β = -0.1310, p > 0.05), though not significantly, suggesting risks without proportional returns. Firm size also negatively affects performance (β = -1.8647, p < 0.05), highlighting potential bureaucratic inefficiencies. The co-integration test confirms a stable long-term relationship among the variables. This study enriches the financial management literature by demonstrating how these factors interact to influence profitability in a high-capital, regulated industry, emphasizing the importance of sector-specific dynamics in financial strategy. 

The purpose of this study is to examine the impact of board independence, CEO duality (managerial discretion) and corporate governance mechanism on firm performance measured through accounting-base measures i.e. return on assets as well as market-based measure i.e. Tobin’s Q among Pakistan's KSE-listed non-financial firms from 2011 to 2021. The study used software (STATA 12) to analyze the data of 172 firms using the Generalized Method of Movements as well as Random Effect and Fixed Effect regression models to test how each corporate governance and managerial discretion variables contributes to the firm performance. Data was extracted from the annual reports, database, and websites of KSE-listed firms. The presence of board independence contributes positively to firm performance. The study highlights that although CEO duality has no impact on firm performance, but presence of board independence controls the managerial discretion provided by CEO duality and offer the necessary resources as well as monitoring the control the managerial discretion and improve firm performance. This article makes a significant theoretical contribution by synthesizing and extending key governance theories to offer a nuanced understanding of the intricate dynamics within corporate governance (CG), particularly in the specific context of KSE-registered non-financial firms in Pakistan. This research contributes actionable insights that span governance improvement, informed decision-making, regulatory considerations, and strategic performance enhancement, offering practical benefits for the diverse stakeholders in the corporate governance landscape.

This study examines the relationship between corporate governance (CG) and agency costs using Korean market data, particularly for chaebol firms. The final sample includes 660 firm-year observations between 2016 and 2020 for Korean non-financial firms listed on the Korean Composite Stock Price Index (KOSPI). This study employs an ordinary least-squares panel data regression model using two proxies for agency costs, namely, asset utilization ratio and operating expense ratio, and six CG individual metrics as independent variables (CG score, protection of shareholder rights, board structure, disclosure, audit organization, and managerial discretion and error management). We find that firms with high CG experience lower agency costs than those with low CG. Moreover, our evidence suggests that firms can decrease agency costs by improving the quality of CG. The results of our regression model also support the idea that CG is effective in reducing agency costs for chaebol firms but not for non-chaebol firms. Finally, our findings suggest that the implementation of effective CG mechanisms in firms might improve managerial behavior through better decision-making to maximize the value of firms.

PurposeThis paper builds upon managerial discretion literature to study the relationship between foreign ownership and bribery intensity.Design/methodology/approachBuilding on World Bank’s data of 9,386 firms from 125 countries over the period 2006–2018, this paper uses Tobit regression, ordered probit and logit models to empirically test the hypotheses.FindingsThis paper finds that firms have higher bribery intensity when executives have a higher level of managerial discretion. Smaller firms with slack financial resources tend to bribe more when they face more government intervention, munificent and uncertain industrial environment.Originality/valueExtant corruption literature has addressed the effects of external institutional settings and internal corporate governance on bribery offering among multinational enterprises (MNEs). How much, and under what condition do top executives matter in bribery activities are yet to be answered. This paper integrates the concept of managerial discretion with corruption and bribery literature and offers a potential answer to the above question. In addition, prior corruption and bribery literature have primarily studied bribery through either micro- or macro-level analysis. This paper adopts multiple-level of analyses and elucidates the foreign ownership and bribery relationship from the organizational and industrial levels.

The purpose of this study is to explore the reasons behind accounts receivable (AR) investment in Pakistani firms. This study uses an exploratory sequential mixed-methods approach, integrating qualitative and quantitative analyses for a comprehensive perspective. The qualitative phase develops a grounded conceptual framework and includes interviews with chief financial officers from Pakistan Stock Exchange (PSX) listed firms. The quantitative phase analyzes secondary data from non-financial PSX-listed firms from 2009 to 2018. The study reveals that corporate governance, business risk, auditor quality and earnings management significantly influence AR decisions in Pakistani firms, while complexity, sales variations, technology and industry competition do not. Many firms lack formal AR policies, relying on the discretion of board members and chief executive officers. The findings challenge the financial advantage theory, supporting the product quality hypothesis and price discrimination theory, suggesting that established firms may not require credit sales and that firms with higher profit margins invest more in AR. This study highlights the importance of implementing country-specific AR policies and utilizing mixed-method approaches in AR research. Policy makers should develop tailored AR policies for emerging markets, particularly Pakistan, by considering each nation’s unique dynamics. Researchers should adopt mixed-methods approach to gain a comprehensive understanding of AR studies, facilitating the design of effective financial policies, legal frameworks and credit management practices. The originality and significance of this research reside in its dual-phase methodology, elucidating both qualitative insights and quantitative evaluation of the conceptual model.

This paper examines whether CEOs with MBA training adjust corporate capital expenditures (CapEx) differently during macroeconomic crises. It evaluates whether MBA-trained CEOs cut CapEx less aggressively than non-MBA CEOs in periods of heightened uncertainty and assesses how this effect varies with governance strength and investment opportunities. Using a panel of U.S. public firms from 1989 to 2022, we employ a difference-in-differences (DiD) design centered on the 2008–2009 financial crisis and the 2020 COVID-19 shock. The analysis incorporates CEO and firm controls, with heterogeneity tests based on Tobin’s Q and the E-index to capture variation in managerial discretion. Robustness checks include dynamic event-study models and placebo analyses. Firms led by MBA-trained CEOs reduce CapEx significantly less during crisis periods than firms led by non-MBA CEOs. This effect is concentrated in firms with weaker governance and greater investment opportunities. No meaningful differences emerge outside crisis periods or in firms with tight governance constraints. The study underscores the need to investigate further how managerial traits influence corporate decision-making in periods of heightened uncertainty. For boards and investors, the results indicate that CEO educational background influences investment stability during macroeconomic distress. MBA-trained CEOs may help maintain long-term investment commitments when external conditions deteriorate. By sustaining investment during crises, firms led by MBA-trained CEOs may support broader economic resilience, helping mitigate the depth of downturns and contributing to faster post-crisis recovery. This study provides new evidence on how formal managerial education affects strategic investment behavior during crises. It shows that the influence of MBA training is contingent on governance structures and firm opportunities, offering insights for both behavioral corporate finance and executive selection.

Purpose Agency theory postulates that research and development (R&D) investments are subject to managerial discretion and thus may not enhance firm value as expected. The inconclusive empirical findings in the literature is a testament of that. This paper aims to investigate the interplay between board gender diversity (i.e. women on boards) and value relevance of firms’ effort to innovate as indicated by firms’ R&D investments. Design/methodology/approach Through a sample of 1,626 US-listed firms from the period 2004 to 2019, the authors examine whether board gender diversity promotes or hampers value relevance of firms’ efforts to innovate. The authors use ordinary least squares as the baseline model and address potential endogeneity through instrumental variable two-stage least square, and selection bias through Heckman selection model. Finally, the authors use the financial crisis of 2008 as a natural experiment to investigate the effect of board gender diversity during the crisis period. Findings The results show that board gender diversity positively moderates the relation between R&D and firm value. In times of financial crisis, R&D does not destroy firm value in firms with gender diverse board. The results are robust to measurement error, endogeneity issue, particularly simultaneity and selection bias. Practical implications The findings in this study have several practical implications. Firms that invest heavily in R&D should be mindful of gender diversity in their board recruitment strategies to enhance innovation outputs and firm value. Current and potential investors (i.e. shareholders) should take into consideration board gender diversity in their investment decision-making processes as the results show that gender diverse boards promote more effective governance, which, in turn, leads to better alignment of R&D investments with shareholder value. Regulators aiming to improve corporate governance policies should encourage gender diversity on the boards. The results align with global initiatives such as the United Nations Sustainable Development Goals, particularly Goal 5 on gender equality. Policymakers may use the findings in this study to advocate for more gender diverse governance structures within corporations. Originality/value This study investigates the role gender diverse boards play in creating value from firms’ R&D activities.

This paper investigates the financial performance and corporate governance variables that influence firm valuation. This study analyzes 91 Spanish small and medium-sized enterprises (SMEs) listed on BME Growth using a fixed effects panel data model based on 5760 observations. This study covered a period of five years from 2015 to 2019. This study concludes that profitability, capital structure and ownership concentration are key value drivers, while liquidity and efficiency are not statistically significant and require further contextual examination. Regarding corporate governance, the presence of controlling shareholders was found to have a significant positive impact on firm value, reinforcing the importance of ownership concentration in reducing agency conflicts and enhancing oversight. Other governance frameworks, such as firm structure and managerial concentration, did not exhibit significant effects.

Corporate governance has been widely applied in developed countries to promote accountability, transparency, and efficiency within corporations. In Vietnam, as the country transitions toward integrating international standards, corporate governance has become an emerging and critical area of focus. Therefore, this study aims to examine the relationship between corporate governance characteristics and corporate financial distress. The study utilizes the dataset of about 500 listed companies in the Vietnam stock exchange during 2014–2022. Feasible generalized least squares regression (FGLS) is employed to account for the heteroskedasticity and autocorrelation problems. Regression results show that frequent board meetings and more gender-diverse boards improve corporate financial health, while an increase in board members and duality roles have negative effects. Duality is often associated with increased agency problems, inefficient capital usage, and higher risk levels that reduce financial health. However, the impact is different in complex firms measured by book-to-market ratio and operating cycles. In complex firms, duality proves valuable by providing unified leadership and enabling active, clear management strategies. This can be explained by the fact that clear and flexible strategies outweigh the benefits of separation between the chairman and Chief Executive Officer. AcknowledgmentThe author gratefully acknowledges the financial support from the Banking Academy of Vietnam.

This study examines corporate cash holding through the lens of the four motives in Keynesian theory (Schumpeter & Keynes, 1936): 1) transactions, 2) caution, 3) taxes, and 4) agency, (Roy, 2018). It explores the influence of financial performance, corporate governance, and political connections on cash holding, with political connections serving as a mediating factor. The research employs quantitative methods grounded in the philosophy of positivism, focusing on a specific population of 105 companies, with a final sample of 735 observations. The findings suggest that audit committees, current ratios, quick ratios, and political connections play a role in improving cash holding. The study concludes that financial performance, corporate governance, and political connections significantly impact cash holding. While financial performance and governance influence the formation of political connections, political connections do not mediate the relationship between financial performance, corporate governance, and cash holding. This study highlights the importance of liquidity and the interaction between political, debt, and asset connections in achieving corporate objectives. The dynamics of financial performance, corporate governance, and political connections are crucial to public interest.

This research aims to examine the influence of Good Corporate Governance as proxied by the size of the Board of Directors, Independent Commissioners, Audit Committee and Institutional Ownership on Financial Distress partially or simultaneously. The research method used is quantitative and uses secondary data, namely service firms, one of which is the transportation sector, which is listed on the Indonesia Stock Exchange. The sample used was 7 issuers and the results were obtained using a purposive sampling method. The analytical method used is multiple linear regression analysis techniques. The results of this research show that overall, the size of the Board of Directors, Independent Commissioners, Audit Committee and Institutional Ownership variables partially or simultaneously influence Financial Distress. Managerial Implications for the study on the effect of good corporate governance on financial distress highlight the critical role of robust governance practices in mitigating financial risks and ensuring organizational stability. Implementing strong governance mechanisms such as effective board oversight, transparent financial reporting, and adherence to regulatory requirements can significantly reduce the likelihood of financial distress.