Financial Flexibility and Adjustment Speed of Capital Structure

Selection the optimal capital structure and the method of financing، is the main concern of the financial manager. Inadequate capital structure، affect different areas of the company and can create problems such as inefficiency in the marketing of products، inability to use the manpower and the same result. On the other hand، several studies have shown that due to the problems of the traditional theory of capital structure، the factors affecting the issues of financing companies، the financial flexibility. This study examines the role of financial flexibility to adjust speed of corporate financial leverage. For this purpose، the companies listed in Tehran Stock Exchange، 108companies were selected and financial data for the years 1382 to 1392 were studied. The results indicate that for companies that are above optimal leverage، financial flexibility is not the main factor to adjust speed of leverage. But for companies that are below optimal leverage، a significant positive correlation is obtained with the adjustment speed of leverage.