Analysis of Financial Flexibility and Financial Distress Costs

作者：Xiao Han

院校：Suzhou University of Science and Technology, China

摘要：This paper provides a comprehensive analysis of the relationship between financial flexibility and financial distress
costs. The empirical findings reveal a negative association between financial flexibility and financial distress costs. Companies
with higher levels of financial flexibility, as measured by liquidity ratio, cash reserves, and access to credit, experience lower
financial distress costs. Additionally, the study considers other factors influencing financial distress costs, such as company size,
industry competition, leverage, and profitability. The findings underscore the importance of financial flexibility in mitigating
financial distress costs and highlight the need for companies to prioritize liquidity, cash reserves, and credit access to enhance
their financial resilience. The paper also identifies several research limitations and suggests future directions for research in this
area.

关键词

financial flexibility; financial distress costs; liquidity ratio; cash reserves; access to credit; company size; industry competition; leverage; profitability; research limitations; future research directions

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References

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Analysis of Financial Flexibility and Financial Distress Costs

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