The effect of financial flexibility on profitability and sustainable growth rate in the Corona pandemic era: Evidence from Egyptian stock market

Document Type : Original Article

Author

Accounting department, Faculty of management sciences- MSA university

Abstract

Financial flexibility enables companies to avoid financial distress and bankruptcy, especially during times of crisis. Studying the repercussions of the Corona pandemic on companies’ financial policies has become important at the academic and practical levels. This paper aims to investigate the effect financial flexibility on profitability and sustainable growth rate. In addition, to test the direct and moderating effect Corona pandemic on the research variables. Using 410 observations gathering from non-financial companies listed on Egyptian stock market from 2016 to 2023. The results showed significant positive effect of financial flexibility on profitability and sustainable growth rate. Moreover, Corona pandemic has a negative impact on profitably, while it had insignificant effect on sustainable growth rate. No moderating impact had found for that pandemic on the interest relationship. The findings highlight financial policy makers to pay attention in achieving a balance between increasing profits while maintaining the capital structure and sustainable growth.

Keywords

MSA-Management Sciences Journal
Volume 3, Issue 4
November 2024
Pages 183-200

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