Does financial flexibility drive firm's risk‐taking in emerging markets? The moderating role of investment efficiency-Reference-Cited by-同舟云学术

Does financial flexibility drive firm's risk‐taking in emerging markets? The moderating role of investment efficiency

Published:2024-08-02 Issue: Volume: Page:
ISSN:0143-6570
Container-title:Managerial and Decision Economics
language:en
Short-container-title:Manage Decis Econ

Author:

Bagh Tanveer¹^ORCID,Khan Muhammad Asif²^ORCID,Naseer Mirza Muhammad³^ORCID,Iftikhar Kainat¹^ORCID

Affiliation:

1. School of Finance Central University of Finance and Economics Beijing China

2. Department of Commerce University of Kotli, Azad Jammu and Kashmir Kotli Pakistan

3. International Business School Teesside University Middlesbrough UK

Abstract

AbstractUsing a sample of 2301 listed firms from emerging markets for 2014–2023, we examine the effect of financial flexibility (FF) on firm risk‐taking (FRT) and how this relationship is moderated by investment efficiency (INVEFF). GMM and bias‐corrected method of moments models indicate a positive impact of FF on FRT. Notably, INVEFF emerges as a significant moderator, influencing the FF–FRT relationship. High INVEFF strategically amplifies the effect of FF on FRT. Robustness analysis ensures the stability of study findings. This study contributes valuable insights to the nuanced understanding of the FF–FRT relationship in emerging markets.

Publisher

Wiley

Link

https://onlinelibrary.wiley.com/doi/pdf/10.1002/mde.4337

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