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American Journal of Business and Operations Research
Volume 4 , Issue 1, PP: 23-27 , 2021 | Cite this article as | XML | Html |PDF

Title

The Impact of Free Cash Flows to the Financial Flexibility of the Banks listed in the Colombo Stock Exchange

Authors Names :   Nadhira Mahath   1 *     Maha Saad Metawea   2  

1  Affiliation :  University of Kelaniya, SRI LANKA

    Email :  nadhira.mahath@gmail.com


2  Affiliation :  College of Business Administration, Delta University for Science and Technology, Gamasa City, Dakhliya, Egypt

    Email :  Dr.mahasaad@hotmail.com



Doi   :   https://doi.org/10.54216/AJBOR.040102

Received: March 10, 2021 Accepted: July 11, 2021

Abstract :

There are considerable arguments in favour of and against the positive relationship between free cash flows (FCF) and financial flexibility. The aim of the study is to determine the impact of free cash flows on the financial flexibility of the banks listed in the Colombo Stock Exchange (CSE). The free cash flow will measure according to the model in Journal of Finance: Agency costs and ownership structure in 2000 and financial flexibility will determine using the financial leverage based on the model captured according to the Accounting Horizons Journal: Financial flexibility and investment decisions in 2007 . The population of the study is the banks listed in the CSE. The sample consists of 60 observations covering 12 banks for a period of over 05 years from 2015 to 2019. The panel regression model has been used to test hypotheses. The results indicate that there is a positive significant relationship between free cash flows and the financial flexibility of the banks listed in CSE.

Keywords :

Free cash flow; Financial flexibility; Leverage; Free Cash Flows; Colombo Stock Exchange

References :

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Cite this Article as :
Style #
MLA Nadhira Mahath ,Maha Saad Metawea. "The Impact of Free Cash Flows to the Financial Flexibility of the Banks listed in the Colombo Stock Exchange." American Journal of Business and Operations Research, Vol. 4, No. 1, 2021 ,PP. 23-27.
APA Nadhira Mahath ,Maha Saad Metawea. (2021). The Impact of Free Cash Flows to the Financial Flexibility of the Banks listed in the Colombo Stock Exchange. American Journal of Business and Operations Research, 4 ( 1 ), 23-27.
Chicago Nadhira Mahath ,Maha Saad Metawea. "The Impact of Free Cash Flows to the Financial Flexibility of the Banks listed in the Colombo Stock Exchange." American Journal of Business and Operations Research, 4 no. 1 (2021): 23-27.
Harvard Nadhira Mahath ,Maha Saad Metawea. (2021). The Impact of Free Cash Flows to the Financial Flexibility of the Banks listed in the Colombo Stock Exchange. American Journal of Business and Operations Research, 4 ( 1 ), 23-27.
Vancouver Nadhira Mahath ,Maha Saad Metawea. The Impact of Free Cash Flows to the Financial Flexibility of the Banks listed in the Colombo Stock Exchange. American Journal of Business and Operations Research, (2021); 4 ( 1 ): 23-27.
IEEE Nadhira Mahath,Maha Saad Metawea, The Impact of Free Cash Flows to the Financial Flexibility of the Banks listed in the Colombo Stock Exchange, American Journal of Business and Operations Research, Vol. 4 , No. 1 , (2021) : 23-27 (Doi   :  https://doi.org/10.54216/AJBOR.040102)