The present study examines the role of financial competitiveness among small-scale industries in the Indian Economy. Finance is the important key resource to start and survive in that field successfully. The considered factors in... more
The present study examines the role of financial competitiveness among small-scale industries in the Indian Economy. Finance is the important key resource to start and survive in that field successfully. The considered factors in financial competitiveness such as financial flexibility, financial capability, financial strategy, financial knowledge, and financial innovations. In this research, 432 samples were drawn by using stratified random sampling technique and analyzed. The result was financial flexibility and financial capability have a positive effect and financial strategy, financial knowledge and financial innovation have a negative effect on financial competitiveness among small-scale industries. The suggestion was the future researcher may focus on some other factors on financial competitiveness.
In the challenging business scenario prevalent throughout the world it is utmost important that the firms have a firm grip on their financial attributes. Three factors can broadly be identified as true indicators of the financial... more
In the challenging business scenario prevalent throughout the world it is utmost important that the firms have a firm grip on their financial attributes. Three factors can broadly be identified as true indicators of the financial well-being of the firm. In our research, we look at exploring the factors that influence these three factors of financial flexibility, financial performance and financial structure. Extensive literature survey was carried out to create a background and identify the factors. ISM was applied to determine the driving and driven factors. The factors were then validated by applying regression on 10 years historical financial data derived from the balance sheet and cash flow statements of five major FMCG firms in India.
Abstract The article investigates conceptual positions of providing financial flexibility of decision making in the bank’s investment activity. It emphasizes the use of the mechanism, which includes the choice of investment strategy on... more
Abstract The article investigates conceptual positions of providing financial flexibility of decision making in the bank’s investment activity. It emphasizes the use of the mechanism, which includes the choice of investment strategy on the basis of institutional flexibility of decision-making; optimization of bank investment portfolio taking into account market flexibility; evaluation and regulation of managerial flexibility of decision making.
The present study investigates whether listed Brazilian companies between 1995 and 2008 coordinated cash and debt policies for effects of hedging against underinvestment under conditions of financial constraint. The results indicate the... more
The present study investigates whether listed Brazilian companies between 1995 and 2008 coordinated cash and debt policies for effects of hedging against underinvestment under conditions of financial constraint. The results indicate the absence of a hedging component when simultaneously using cash and debt policies in constrained firms. For firms with financial constraints there was positive sensitivity of cash to cash flow and negative sensitivity of debt to cash flow, regardless of the need for hedging. The unconstrained firms did not present statistically significant sensitivity of cash to cash flow, but presented negative sensitivity of debt to cash flow, results that were also independent of the need for hedging. These findings run counter to those of Acharya, Almeida & Campello (2007) in the American market, where cash and negative debt were found to play different roles in intertemporal optimization of investments among constrained firms, according to the need for hedging.
This studied examined the effect of financial flexibility on profitability of Money Deposit Banks in Nigeria. The study adopted the survey method and data were collected using a structured questionnaire and these were complemented with... more
This studied examined the effect of financial flexibility on profitability of Money Deposit Banks in Nigeria. The study adopted the survey method and data were collected using a structured questionnaire and these were complemented with oral interview. From a population of 694, a sample of 255 was selected through multistage sampling technique. The hypothesis was tested using the probability values anchored on simple linear regression estimations. The findings revealed that flexible financial practice in the firms studied has a positive effect on profitability (p-value =0.000, R2 = 0.611682). Based on the findings, the study concludes that financial flexibility enhances profitability of Nigerian Money Deposit Banks. Among others, it is recommended that an appropriate flexibility mix should be adopted by deposit money banks in order to increase and sustain the profitability of their firms.
Flexibility can be viewed as a linkage between domestic and foreign borrowing capacity. Using accumulated internal funds, it enables the company to make growth choices at a right time in a competitive manner and do projects with positive... more
Flexibility can be viewed as a linkage between domestic and foreign borrowing capacity. Using accumulated internal funds, it enables the company to make growth choices at a right time in a competitive manner and do projects with positive net present values. However, the existence of Principal-principal Conflict resulted from the separation of ownership from management can affect this effectiveness. The purpose of this study is to investigate the effect of financial flexibility on the intensity of investment and dividend with emphasis on role of principal-principal Conflict in the companies admitted to Tehran Stock Exchange. In general, the use of a sample (102 companies) from Stock Exchange companies for the years 2011-2017, based on linear regression, suggests that the flexibility financial composite index has a significant positive effect on investment propensity and dividend policy. Likewise, the interactive effect of flexibility financial composite index and Principalprincipal Conflict composite index have a moderating effect on investment propensity and dividend policy. It is also of a significant negative effect on the investment propensity and dividend policy.
The present study aimed to document the effects of financial constraints on the negative relationship between cash flow and external funds, a phenomenon associated with the Pecking Order Theory. This theory suggests that companies subject... more
The present study aimed to document the effects of financial constraints on the negative relationship between cash flow and external funds, a phenomenon associated with the Pecking Order Theory. This theory suggests that companies subject to more expensive external funds (financially constrained firms) should demonstrate a stronger negative relationship with cash flow than companies subject to minor financial frictions (financially unconstrained firms). The results indicate that the external funds of constrained firms consistently present less negative sensitivity to cash flow compared with those of unconstrained companies. Additionally, the internal funds of constrained companies demonstrate a positive sensitivity to cash flow, whereas those of unconstrained companies do not show any such significant behavior. These results are in accordance with the findings of Almeida and Campello (2010), who suggest the following: first, because of the endogenous nature of investment decisions in constrained companies, the complementary relationship between internal and external funds prevails over the substitutive effects suggested by the Pecking Order Theory; and second, the negative relationship between cash flow and external funds cannot be interpreted as evidence of costly external funds and therefore does not corroborate the Pecking Order Theory.