The impact of financial flexibility on capital structure decisions with Using Brian Clark and Farkland and Wang

In the present study attempts to explore the relationship between the cash value (financial flexibility) and financial leverage (capital structure) examined the impact of flexibility was studied capital structure decisions.Terms of increase or decrease in the past years. And we can conclude that this hypothesis can not be confirmed based on Brian Clark. But Fvlkandr model and Wang demonstrated that financial flexibility and leverage in recent years, and this year there was a significant relationship According to Clark 2011 match. When the final value of financial flexibility is high, the influence of variables (eg, interest, depreciation and amortization expense, fixed assets, etc.), the leverage will be of little importance and little visible change in their leverage. Companies that have high marginal value of financial flexibility are inclined to maintain the current period debt capacity significantly, it is likely that in the near future, but a deliberate attempt to temporary deviations from their target leverage ratios.