THE IMPACT OF FINANCIAL FLEXIBILITY ON LIQUIDITY WITH CAPITAL STRUCTURE AS THE INTERVENING VARIABLE
Abstract
Financial flexibility demonstrates the company’s financial ability in handling uncertain situations, especially during the Covid-19 pandemic. The purpose of this study were to test and analyze the impact of financial flexibility towards the company’s liquidity with capital structure as the intervening variable. Applying quantitative method, the study took samples from companies listed in the Indonesian Stock Exchange in the period of 2020 and 2021 during the Covid-19 pandemic and examined the impact towards company’s liquidity. Results demonstrated that financial flexibility indeed influences company’s liquidity; the flexibility, however proves to be insignificant to the capital structure.
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