Title:
FINANCIAL FLEXIBILITY AND COMPANY PERFORMANCE ON INVESTMENT: A STUDY IN PT KERETA API INDONESIA (PERSERO)

Authors:
Nanang Farid W, Djoko Suhardjanto, Indonesia

Abstract:

This study attempted to find out the effect of financial flexibility on financial performance using investment as the moderating variable. This study was conducted in Indonesia's only state-owned railway transportation service provider, PT KAI, using quarterly financial reports from 2010 to 2019. This study provided a depiction and enriched literature on financial flexibility, especially in the context of state-owned enterprises that are prone to agency costs. The data of the study were processed using Eviews. The result indicated that financial flexibility affects company performance. The investment was also found to moderate the effect of financial flexibility on company performance.