| Abstract [eng] |
Relevance of the topic. It is recognized that financial flexibility is a relatively new concept, which, due to its popularity and attention, is increasingly being discussed by both practitioners and researchers. The modern economy, which is exposed to a context of great uncertainties, only makes financial flexibility even more popular. It becomes important for companies to invest in growth opportunities and make strategic investments that increase the value of companies. Financially inflexible companies may find it difficult to raise financing for the implementation of new investments. However, it is the competitive advantage that financial flexibility provides that allows companies to generate the greatest value for investors, and investors are increasingly focusing on a company's financial flexibility. A company maintaining greater financial flexibility and being able to demonstrate that it allocates it resources in such a way as to obtain the maximum return on investment is more likely to attract high-quality investors, which is why companies in today's business environment pay great attention to both financial flexibility and investment efficiency. The relationships and relationships between these two interrelated factors are important because a lack of financial flexibility can prevent a company from investing in profitable opportunities, which can lead to a decrease in investment efficiency, while companies with sufficient financial flexibility can better manage market uncertainty, make timely investments, and receive higher returns. return of investment The object is the influence of financial flexibility on the company's investments efficiency. The aim of the work is to investigate the interaction between company's financial flexibility and company's investment efficiency. Main results of the project. In the first part of the project, after conducting a research review, it was found that financial flexibility should give companies an advantage to take advantage of efficient investments that improve the company's financial results, generate higher returns on investments, reduce costs and improve the cash flows of companies. In the second part of the project, after a detailed analysis of the scientific literature, it was found that some authors claim that financial flexibility is the missing link that connects both decisions related to the capital structure and the efficiency of the company's investments. In addition, the studies described in the scientific literature prove that financial flexibility has a positive effect on the company's investments and increases them, providing additional opportunities to borrow or use already accumulated reserves of money and cash equivalents, thus acquiring additional capital for the company, therefore, the company can more easily use new investments, and it also increases the efficiency of the investments themselves. In the third part of the project, the main objective of the empirical study was named, to determine the positive influence of financial flexibility on investment efficiency, not only during periods of economic recession or financial crisis. In the fourth part of the project, after conducting a study of the financial flexibility of listed companies in the Baltic countries and Sweden and its influence on investment efficiency, it was found that listed companies operating in a large market have a greater scale and efficiency of investments, which allows companies to respond to changes in the business environment faster and more efficiently, thus increasing the financial flexibility of these companies and competitiveness. Large market listed companies operate in a larger market where there is more competition, which opens opportunities for companies to earn higher profits. The Baltic countries have also experienced quite large stages of economic growth and development, but the markets in these countries are still considered developing, and economic conditions in them can be volatile. As a result, companies operating in the region need to maintain greater financial flexibility to maintain profitability. |
