Title: Effects of management effectiveness, firm life cycle, and financial flexibility on firm's performance

Authors: Avula Sreenivasulu; Rajesh Mamilla

Addresses: Department of VIT Business School, Vellore Institute of Technology, Vellore, Tamilnadu, India ' Department of VIT Business School, Vellore Institute of Technology, Vellore, Tamilnadu, India

Abstract: A firm's financial flexibility (FF) is directly impacted by several restrictions on its financing strategy because the stock exchange in emerging nations is still evolving. By employing customised financial flexibility indicator (FFI), this research explores the connection between managerial efficiency (ME) at various periods of the corporate life span and the firm's performance, as well as the association with FF and the firm's performance. The judgment matrix technique is used to at least deliver realistic predictions in line with firm situations having less than 12% faults in comparison to the real weights, it is challenging for this analysis to determine the accurate weights on every component in assessing FF. By changing a range of weights and parameters, this customised FFI is especially ideal for firms subject to specific distinct financial reporting rules. This research could be useful to practitioners in understanding the management structure used by firms in developing nations.

Keywords: financial flexibility; customised financial flexibility indicator; FFI; firm's performance; management effectiveness.

DOI: 10.1504/IJPMB.2024.138359

International Journal of Process Management and Benchmarking, 2024 Vol.17 No.2, pp.199 - 213

Received: 04 Apr 2023
Accepted: 08 Apr 2023
Published online: 01 May 2024 *

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