The effect of Financial flexibility on Company's Risk-taking and the Moderating Role of Organizational Resilience: Empirical Evidence from Egypt | ||
| المجلة العلمية للدراسات والبحوث المالية والتجارية | ||
| Volume 7, Issue 1, January 2026, Pages 1-31 PDF (905.78 K) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/cfdj.2025.437564.2404 | ||
| Author | ||
| Mohamed Saleh Abd Ellatief Assran* | ||
| Faculty of Commerce, Cairo University | ||
| Abstract | ||
| Using a sample of Egyptian listed companies from 2013–2024, this paper investigates the effect of financial flexibility on risk-taking, as well as the moderating effect of organizational resilience. The study relied on the use of the feasible generalized least squares (FGLS) model to address the statistical challenges that emerged from previous tests such as the presence of autocorrelation and heteroscedasticity. Findings show that:(1) financial flexibility has a significantly positive effect on risk-taking, indicating financial flexibility contributes to increase the company’s ability to take risks. (2) organizational resilience as a moderator variable has a significantly negative effect , indicating high organizational resilience reduces the positive effect of financial flexibility on risk-taking, and the organizationally resilience companies avoiding high-risk projects because they having risk assessment systems, internal control, and greater stakeholder participation. The findings of this study provide important managerial and theoretical implications for investors, policymakers, academics, and other stakeholders. The study encourages future research to examine the impact of financial flexibility on risk-taking across firm sizes and economic contexts. | ||
| Keywords | ||
| Financial flexibility; Company risk taking; Organizational resilience; Egyptian listed companies; Moderating effect | ||
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