Authors : Hassan Esfandiari and Babak Jamshidinavid
Abstract: Financial flexibility the ability of a firm to respond effectively to the opportunities for non-influx of cash and investment shows. Although, measurement of financial flexibility due to its invisibility is difficult but to measure various parameters such as a leverage ratio, mode of financing and the cost of external borrowing used, in this study to the investigation of effect financial flexibility on dividend policy, financial leverage and level of cash holdings are discussed. Spatial domain research firms listed in the Tehran Stock Exchange after the procedure systematic elimination, a total of 100 companies were selected as sample of this research as well as research time territory, between the years 2008-2013. In this study for data analysis of multiple regression models and combined data and EViews Software used, the findings show that the financial flexibility with pay interest and financial leverage negatively and positively correlated with the level of cash holdings.
Hassan Esfandiari and Babak Jamshidinavid, 2016. The Investigation Effect of Value of Financial Flexibility on Dividend Policy, Financial Leverage and Level of Cash Holdings. International Business Management, 10: 1215-1219.