The Mediating Role of Managerial Efficiency on the Effect of Financial Flexibility on Company Performance

Title: The Mediating Role of Managerial Efficiency on the Effect of Financial Flexibility on Company Performance

Author: Ni Made Anom Adhiapsari

Affiliations : Masters Program in Accounting, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

The aim of this research is to determine the effect of financial flexibility on company performance through managerial efficiency. This research is descriptive quantitative research with associative research methods and explanatory research. This research uses secondary data in the form of data originating from company financial reports. There are 194 companies sampled in this research which are manufacturing companies listed on the Indonesia Stock Exchange (BEI). Data analysis in this research uses Structural Equation Modeling (SEM) with a Partial Least Square approach using the WarpPLS6.0 application. The research results show that financial flexibility has a positive effect on company performance, financial flexibility has a positive effect on managerial efficiency, managerial efficiency has a positive effect on company performance, and managerial efficiency can mediate (partial complementary mediation) the effect of financial flexibility on company performance.

Keywords: financial flexibility, company performance, managerial efficiency.

Sources: http://repository.unair.ac.id/94566/