The Role of Financial Flexibility on Enterprise Sustainable Development during the COVID-19 Crisis—A Consideration of Tangible Assets

Teng, Xiaodong; Chang, Bao Guang; Wu, Kun‐Shan

doi:10.3390/su13031245

Cited by 31 publications

(32 citation statements)

References 41 publications

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“…Existing studies measure FF with either the single indicator method, which analyzes FF using a single indicator such as debt capacity or cash holdings (Billett & Garfinkel, 2004;Byoun, 2008;Marchica & Mura, 2010), the multi-indicator combination method, the use of financial leverage and cash holdings (Arslan-Ayaydin et al, 2014;DeAngelo & DeAngelo, 2007;He et al, 2020;Zeng et al, 2013). As there is no standard way of measuring FF, this research refers to the studies by Al-Slehat (2019) and Teng et al (2021), FF measures and calculates as follows. That is: FF = Cash flexibility + Debt flexibility 1 .…”

Section: Theory Of Capital Structurementioning

confidence: 99%

“…Based on the previously discussed literature, there is no standard way of measuring FF. This research refers to the studies by Al-Slehat (2019) and Teng et al (2021), FF measures and calculates as FF= Cash flexibility + Debt flexibility.…”

Section: Measure Of Variablesmentioning

confidence: 99%

“…Cash flexibility is "an enterprise's ability to make use of internal funds and calculates as Cash flexibility = (cash + cash equivalent)/total assets". Debt flexibility is "an enterprise's ability to obtain external funds and calculates as Debt = 1 -corporate debt ratio", while corporate debt ratio is the ratio of total liabilities to total assets(Teng et al, 2021).…”

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confidence: 99%

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The nonlinear relationship between financial flexibility and enterprise risk-taking during the COVID-19 pandemic in Taiwan?s semiconductor industry

Chang

2021

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Research background: Risk-taking is the basis for sustainable development of enterprise. It was clear that the influence COVID-19 epidemic on the global market economy has increased operational risks for businesses. The semiconductor industry has high operating risks and financial risks. Moderate financial flexibility (FF) can improve the ability of semiconductor enterprises to acquire financial resources in real time, calmly cope with the impact of uncertainties in operation, improve investment opportunities, and enhance sustainable operation. It is therefore interesting to study the influence of FF on enterprise risk-taking (ERT). Purpose of the article: The aim of the contribution is to explore the effect of FF on ERT within Taiwan?s semiconductor industry amid the COVID-19 pandemic period, and investigate whether ERT varies with semiconductor industry characteristic. Methods: Data from first three quarters of 2020, from multinational semiconductor firms listed on the Taiwan Stock Exchange (TSE), were collected and analyzed. Fixed effects regression with heteroscedasticity adjustment used to evaluate the influence of FF on the ERT of Taiwan?s semiconductor industry. Furthermore, in order to corroborate and support the reliability of the results, this research also used the different measures of ERT and Quantile regression (median regression) in the research model to check the robustness. Findings & value added: Empirical results indicate that FF has a U-shaped effect on ERT for multinational semiconductor firms listed on the TSE, particularly within the integrated circuits (IC) manufacturing industry. Additionally, FF also has a U-shaped effect on ERT for the asset-light semiconductor and IC manufacturing industries. This article also suggests that for the asset-light semiconductor and IC manufacturing industries, the optimal inflection points are 1.1397 and 0.9729, respectively. Based on the consequences of this study, it is suggested that Taiwan?s semiconductor industry should reasonably maintain FF and focus on the liquidity risk management for the long term value added, even after the COVID-19 pandemic period.

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Section: Theory Of Capital Structurementioning

confidence: 99%

Section: Measure Of Variablesmentioning

confidence: 99%

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The nonlinear relationship between financial flexibility and enterprise risk-taking during the COVID-19 pandemic in Taiwan?s semiconductor industry

Chang

2021

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“…Fabrication of new semiconductor materials as an alternative for silicon electronics nowadays becomes increasingly important, particularly on the background of COVID-19 pandemic due to the reduced production of semiconductor silicon microchips. [1] The advancements in organic electronics in recent decades have already led to the replacement of silicon by organic semiconductor materials in a number of electronic devices. The most striking example is the widespread adoption of OLED displays.…”

Section: Introductionmentioning

confidence: 99%

Surfactant-Assisted Lateral Self-Assembly of One-Dimensional Supramolecular Aggregates of Lutetium Double-Decker Phthalocyaninates

Zvyagina¹,

Naumova²,

Kuzmina³

et al. 2021

MHC

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The development of feasible strategies for integrating 1D organic semiconductors into films is a challenging issue for organic electronics exploiting planar architectures of microelectronic devices. Herein we describe the method of planar organization of 1D supramolecular aggregates assembled from lutetium crown-substituted double-decker phthalocyaninate into ordered ultrathin films. The method utilizes the Langmuir-Blodgett technique in combination with adding tert-butylamine during the synthesis of the supramolecular aggregates. The atomic force microscopy examination of the resulting films shows that the introduction of surfactant promotes spreading of hydrophobic aggregates on the water subphase yielding ordered ultrathin layers. The size of aggregates can be controlled by varying the ratio of the phthalocyanine ligands and surfactant in the system. The size of the aggregates increases with the concentration of the surfactant, whereas the morphology of the films evolves from a filamentary continuous structure to individual nanowires immobilized in the surfactant layer. The proposed strategy can be used to obtain ordered coatings from 1D aggregates from various organic discotics with semiconductor properties.

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“…Consequently, maintenance of the company's financial flexibility is a way to survive and sustain in the pandemic era. Naturally, the COVID-19 shock presented a loss of cash flow of indeterminate duration for companies, therefore Financial flexibility plays an important role in strategic adjustment especially in an uncertain environment (Teng et al, 2021). An increased firm value can be achieved if there is a cooperation between company management and other parties including shareholders and stakeholders.…”

Section: Introductionmentioning

confidence: 99%

The Influence Of Financial Flexibility, Managerial Ownership, Firm Size On Capital Strukture, And Firm Value On Infrastructure, Utility And Transportation Companies

Jaya

Hamzah

Pono

et al. 2021

International Journal of Science, Technology & Management

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This study aims to analyze the effect of financial flexibility, managerial ownership, and firm size on firm value with capital structure as an intervening variable for infrastructure, utility, and transportation companies. This research was a quantitative study. The data used were secondary data in the form financial statements of infrastructure, utility and transportation companies listed in the Indonesia Stock Exchange during the period 2015-2019. The sample used was a purposive sampling technique consisting of 30 companies infrastructure, utility and transportation. The data were analyzed using path analysis supported by SmartPLS 3.3 software. The results show that financial flexibility has no significant negative effect on the capital structure; managerial ownership has a significant negative effect on the capital structure; firm size has a significant positive effect on the capital structure; financial flexibility has a significant negative effect on firm value; managerial ownership has no significant positive effect on firm value; firm size has no significant positive effect on firm value; capital structure has a significant positive effect on firm value; financial flexibility had no significant effect on firm value through capital structure; managerial ownership has a significant effect on firm value through capital structure; firm size has a significant effect on firm value through capital structure.

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The Role of Financial Flexibility on Enterprise Sustainable Development during the COVID-19 Crisis—A Consideration of Tangible Assets

Cited by 31 publications

References 41 publications

The nonlinear relationship between financial flexibility and enterprise risk-taking during the COVID-19 pandemic in Taiwan?s semiconductor industry

The nonlinear relationship between financial flexibility and enterprise risk-taking during the COVID-19 pandemic in Taiwan?s semiconductor industry

Surfactant-Assisted Lateral Self-Assembly of One-Dimensional Supramolecular Aggregates of Lutetium Double-Decker Phthalocyaninates

The Influence Of Financial Flexibility, Managerial Ownership, Firm Size On Capital Strukture, And Firm Value On Infrastructure, Utility And Transportation Companies

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