Financial Flexibility: An Overview Essay Example

of fear around world financial markets and the banks virtually stopped lending to each other. The risk premium on interbrain borrowing rose sharply to 5%, whereas typically it was close to zero. Although authorities scrambled to inject liquidity into financial markets, the damage was done. On this research, we will focused In financial flexibility and the Impact of the global that our economy not strong and they will have the up and down of the financial.

The financial flexibility also effect the income of our country and people who are involve in cash flow or investment, in the corporate finance and the capital structure. 1.

2 Problem statements The research study is entitled "Financial Flexibility and Impact of The Global Crisis". Financial flexibility is a key aspect in the practice of corporate finance. Financial flexibility refers to a firm's ability to access financing at a low cost and respond to unexpected changes in the firm's cash flows or investment opportunities in a timely manner.

The global financial crisis of 2008-2009, with its epicenter in the United States, has brought enormous ramifications for the world economy.

The study is aim to focus on whether the financial flexibility and impact it to the global financial crisis. 1. Research Objective Financial flexibility refers too firm's ability to access financing at a low cost and in a timely manner (Denis, 2011). A survey of Scoffs in Graham and Harvey (2001) suggests that financial flexibility is the most important determining factor of order determinant of corporate financial policies until very recently. Consequently, as pointed out in Denis (201 1), an interesting and unresolved research question remains: "To what extent are

flexibility considerations first-order determinants of financial policies? " In this paper, we directly test the financial flexibility impact the lobar financial crisis. Below are the objectives that are essential to be achieved for the purpose of completing the ultimate intention of this research which is as follow: I.

To identify the source and determinant of financial flexibility. It.

To identify the impact of the global financial crisis. Iii.

To study whether the financial flexibility will affect the global financial crisis. Lb. To investigate whether cash flow, corporate finance, debt and capital structure are involve in financial flexibility. V. To determine whether the capital structure is the major of the determinant of financial flexibility.

. 4 Research Question Below is the research question when the research are being choose: I. What are the sources and determinant of financial flexibility? I. What is the impact of the global financial crisis? Iii. Is the financial flexibility effect global financial crisis? 'v. Is the cash flow, corporate finance, debt and financial structure effect by the financial flexibility? V.

Is financial 1. 5 Theoretical Framework This research will be conduct using specified model which clearly define independent variable and dependent variable that used during this research. The pendent variable is the variable of primary interest to the researcher.

An independent variable is one that influences the dependent variable in either a positive or negative way.

The model used as follow: 1. 6 Hypothesis According to Mum Cesarean (2003), a hypothesis can be defined as a logically conjectured relationship between two or more variables expressed in the form of a testable statement. This study uses the null and alternate hypothesis format.

The null statements stand for no significant relationship whereas alternate expressed as significant relationship.