| Abstract [eng] |
In the first part of the research, the analysis of scientific literature showed that financial flexibility is beneficial for companies during periods of economic growth and recession, helping them maintain or improve financial performance. In the second part, it was found that different sectors react differently to economic fluctuations, and financial flexibility can have a significant impact on financial indicators such as ROA, ROE, Tobin’s Q and investment activity. Researchers also recognize different functions of financial flexibility, which may be more or less important at different phases of the economic cycle. In the third part, an empirical research model was developed to determine the effect of financial flexibility on the financial performance of companies in cyclical and non cyclical sectors during economic growth or recession. In the fourth part, the results of the empirical study showed that companies in cyclical sectors had higher levels of cash, debt, and financial flexibility than companies in non-cyclical sectors, regardless of the economic period. It was also found that in cyclical sectors, financial flexibility had a stronger positive effect on ROA, ROE, and Tobin’s Q compared to non-cyclical sectors. The effect on ROA was greater during periods of economic growth, while the effects on ROE and Tobin’s Q were stronger during economic downturns. On the other hand, in non-cyclical sectors, financial flexibility had a stronger positive impact on investment activity of companies. This impact was greater during periods of economic growth. These results confirm that financial flexibility is especially important for companies in cyclical sectors during economic downturns, although its relevance also remains significant during periods of economic expansion. |
