IDEAS home Printed from https://ideas.repec.org/a/ibn/ijbmjn/v14y2021i6p1.html
   My bibliography  Save this article

The Impact of the Financial Flexibility on the Performance: An Empirical Study on a Sample of Jordanian Services Sector Firms in Period (2010-2017)

Author

Listed:
  • Zaher Abdel Fattah Al-Slehat

Abstract

This study aims at investigating the impact of the financial flexibility on the performance on a sample of Jordanian services sector firms for the period 2010-2017. The researcher used the analytical descriptive method on a sample consisted of 18 Jordanian firms listed in Amman Stock Exchange. The Multiple Linear Regression Analysis was used to examine the hypotheses of the study. The study revealed that there was an effect of the financial flexibility on the performance of the Jordanian services sector firms. The study recommended paying an increasing attention to the indicators of the financial flexibility by linking it with the performance to achieve a competitive advantage that could be reflected in the existence, development and continuity of the firms.

Suggested Citation

  • Zaher Abdel Fattah Al-Slehat, 2021. "The Impact of the Financial Flexibility on the Performance: An Empirical Study on a Sample of Jordanian Services Sector Firms in Period (2010-2017)," International Journal of Business and Management, Canadian Center of Science and Education, vol. 14(6), pages 1-1, July.
    • Handle: RePEc:ibn:ijbmjn:v:14:y:2021:i:6:p:1
    as

    Download full text from publisher

    File URL: http://www.ccsenet.org/journal/index.php/ijbm/article/download/0/0/39434/40286
    Download Restriction: no
    File URL: http://www.ccsenet.org/journal/index.php/ijbm/article/view/0/39434
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ang, James & Smedema, Adam, 2011. "Financial flexibility: Do firms prepare for recession?," Journal of Corporate Finance, Elsevier, vol. 17(3), pages 774-787, June.
    2. Naiwei Chen & E-N Hsiao, 2014. "Insider ownership and financial flexibility," Applied Economics, Taylor & Francis Journals, vol. 46(29), pages 3609-3629, October.
    3. Chun-Ai Ma & Yanbo Jin, 2016. "What Drives the Relationship Between Financial Flexibility and Firm Performance: Investment Scale or Investment Efficiency? Evidence from China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 52(9), pages 2043-2055, September.
    4. David J. Denis & Stephen B. Mckeon, 2010. "Debt Financing and Financial Flexibility Evidence from Pro-active Leverage Increases," Purdue University Economics Working Papers 1243, Purdue University, Department of Economics.
    5. Laurențiu Droj, 2018. "Considerations Regarding The Evolution Of The Liquidity And Solvency Indicators Of The Most Important Romanian Production Companies In The Period 2014-2017," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 94-101, December.
    6. Tarullo, Daniel, 2008. "Banking on Basel: The Future of International Financial Regulation," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4235, January.
    7. Andrea Gamba & Alexander Triantis, 2008. "The Value of Financial Flexibility," Journal of Finance, American Finance Association, vol. 63(5), pages 2263-2296, October.
    8. Graham, John R. & Harvey, Campbell R., 2001. "The theory and practice of corporate finance: evidence from the field," Journal of Financial Economics, Elsevier, vol. 60(2-3), pages 187-243, May.
    9. Maria‐Teresa Marchica & Roberto Mura, 2010. "Financial Flexibility, Investment Ability, and Firm Value: Evidence from Firms with Spare Debt Capacity," Financial Management, Financial Management Association International, vol. 39(4), pages 1339-1365, December.
    10. John B. Guerard & Eli Schwartz, 2007. "Quantitative Corporate Finance," Springer Books, Springer, number 978-0-387-34465-2, June.
    11. Brounen, D. & de Jong, A. & Koedijk, C.G., 2005. "Capital Structure Policies in Europe: Survey Evidence," ERIM Report Series Research in Management ERS-2005-005-F&A, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xiaodong Teng & Bao-Guang Chang & Kun-Shan Wu, 2021. "The Role of Financial Flexibility on Enterprise Sustainable Development during the COVID-19 Crisis—A Consideration of Tangible Assets," Sustainability, MDPI, vol. 13(3), pages 1-16, January.
    2. Anshu Agrawal, 2020. "Modified Total Interpretive Structural Model of Corporate Financial Flexibility," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 21(4), pages 369-388, December.
    3. Anastassiadis, Friederike & Liebe, Ulf & Mußhoff, Oliver, 2015. "Financial Flexibility in agricultural investment decisions: A discrete choice experiment," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 16(1), pages 1-12.
    4. Chortareas, Georgios & Noikokyris, Emmanouil, 2021. "Investment, firm-specific uncertainty, and financial flexibility," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 25-35.
    5. Haroon ur Rashid Khan & Waqas Bin Khidmat & Sadia Awan, 2021. "Board diversity, financial flexibility and corporate innovation: evidence from China," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(2), pages 303-326, June.
    6. Hu, Jiamin & Li, Kailun & Xia, Yifei & Zhang, Jianing, 2023. "Gender diversity and financial flexibility: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 90(C).
    7. Hang (Robin) Luo & Abu Reza Mohammad Islam & Rui Wang, 2021. "Financing Constraints and Investment Efficiency in Canadian Real Estate and Construction Firms: A Stochastic Frontier Analysis," SAGE Open, , vol. 11(3), pages 21582440211, July.
    8. Anastassiadis, Friederike & Liebe, Ulf & Musshoff, Oliver, 2012. "Finanzielle Flexibilität In Landwirtschaftlichen Investitionsentscheidungen: Ein Discrete Choice Experiment," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 137142, German Association of Agricultural Economists (GEWISOLA).
    9. Fliers, Philip T., 2019. "What is the relation between financial flexibility and dividend smoothing?," Journal of International Money and Finance, Elsevier, vol. 92(C), pages 98-111.
    10. Haifeng Zhang & Zhuo Zhang & Ekaterina Steklova, 2020. "Do Companies Need Financial Flexibility for Sustainable Development?," Sustainability, MDPI, vol. 12(5), pages 1-14, February.
    11. Jiang, Wenwen & Kang, Jangkoo & Kim, Hwa-Sung, 2024. "Is the zero-leverage policy value-enhancing?," The Quarterly Review of Economics and Finance, Elsevier, vol. 93(C), pages 176-189.
    12. Yung, Kenneth & Li, DeQing Diane & Jian, Yi, 2015. "The value of corporate financial flexibility in emerging countries," Journal of Multinational Financial Management, Elsevier, vol. 32, pages 25-41.
    13. Bigelli, Marco & Martín-Ugedo, Juan Francisco & Sánchez-Vidal, F. Javier, 2014. "Financial conservatism of private firms," Journal of Business Research, Elsevier, vol. 67(11), pages 2419-2427.
    14. Islam, Md. Rashidul & Hossain, Monirul Alam & Uddin, Mohammad Shamsu & Bahta, Dawit Teclemariam, 2020. "Does Financial Flexibility foster Investment Efficiency? Evidence from an Emerging Market," Asian Business Review, Asian Business Consortium, vol. 10(2), pages 121-136.
    15. Annalisa Ferrando & Maria†Teresa Marchica & Roberto Mura, 2017. "Financial Flexibility and Investment Ability Across the Euro Area and the UK," European Financial Management, European Financial Management Association, vol. 23(1), pages 87-126, January.
    16. Anastassiadis, Friederike & Mußhoff, Oliver, 2013. "Evaluating the role of financial flexibility in farmers' investment decisions using latent class analysis," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158707, Agricultural Economics Society.
    17. Bao-Guang Chang & Kun-Shan Wu, 2021. "The nonlinear relationship between financial flexibility and enterprise risk-taking during the COVID-19 pandemic in Taiwan’s semiconductor industry," Oeconomia Copernicana, Institute of Economic Research, vol. 12(2), pages 307-333, June.
    18. Naiwei Chen & E-N Hsiao, 2014. "Insider ownership and financial flexibility," Applied Economics, Taylor & Francis Journals, vol. 46(29), pages 3609-3629, October.
    19. Morais, Flávio & Serrasqueiro, Zélia & Ramalho, Joaquim J.S., 2022. "Capital structure speed of adjustment heterogeneity across zero leverage and leveraged European firms," Research in International Business and Finance, Elsevier, vol. 62(C).
    20. Kuti, Mónika, 2011. "Cash Flow at Risk, Financial Flexibility and Financing Constraint," Public Finance Quarterly, Corvinus University of Budapest, vol. 56(4), pages 505-517.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:ijbmjn:v:14:y:2021:i:6:p:1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.