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Zeng, A. M., Peng, Y. L., & Liang, L. Z. (2013). Why Companies Prefer Conservative Capital Structure?—An Empirical Evidence Supporting Financial Flexibility Theory. Business Economics and Management, No. 6, 48-59.

has been cited by the following article:

• TITLE: Analysis of the Influence of Financial Flexibility on Enterprises

  AUTHORS: Xiangyu Xie, Jiawen Zhao

  KEYWORDS: Financial Flexibility, Capital Structure, Investment and Financing, Credit Risk

  JOURNAL NAME: Open Journal of Business and Management, Vol.8 No.4, July 31, 2020

  ABSTRACT: Through the analysis of empirical papers on financial flexibility over the years it can find that the impact of financial flexibility on corporate value shows a trend of increasing first and then decreasing, and there is an inflection point. Financial flexibility reserve is helpful to reduce the credit risk of the enterprise and help the enterprise to buffer under the environment of greater uncertainty. This buffer is more obvious when the financing constraint is greater. At the same time, this paper puts forward relevant suggestions on how to improve the financial flexibility of enterprises: increase the proportion of equity funds, increase capital reserves, and choose appropriate dividend policies.