Financial Slack

Extra money that a company has available in case of a downturn in sales, revenue, or profit. Financial slack may help a company make it through a difficult period. It is the equivalent of a company's savings.

References in periodicals archive ?

In this study, we explored the value of financial slack in the context of economic recession which, as detailed earlier, has been anecdotally offered in several preceding studies but not empirically tested.

The performance implications of financial slack during economic recession and recovery: observations from the software industry (2001-2003) *

Still, couldn't the county cut the Knoop folks some financial slack? "This event is something that promotes community spirit," says Knoop resident Jesse McManus.

County rains on tiny parade

Having cash and marketable securities (financial slack) reduces the need to borrow.

Founding Family Control and Capital Structure: The Risk of Loss of Control and the Aversion to Debt

O'Brien (2003) found that firms competing on the basis of innovation make financial slack a strategic priority.

What is the relationship between organizational slack and innovation? *

Now, Equation (2) informs how much of the investment need has been financed through financial slack (internal capital) and how much through capital provided by the external market.

Size of Financing Need and the Choice between Asset Sales and Security Issuances

David Cameron took the reins on his own in 2015 when the Tory-Lib Dems divorce was finalised and it meant he could introduce the policy that would make the BBC and not the Treasury take up the financial slack over the free licences.

Will cost-cutting see BBC pull plug on its new Scottish channel?

It is far from clear the Ospreys have the financial slack to bid for him, even if they were interested.

The truth about rumours the Ospreys have made a dramatic swoop for All Black; The Liberty Stadium region have seen Dan Biggar depart for Northampton Saints this summer

Financial slack may also influence transnationality, knowledge-based assets, and profitability (Bourgeois 1981).

Transnationality and financial performance in the era of the global factory

This indicates that financial slack influences the cash donations of enterprises.

How does the corporate philanthropy develop in China? Ideas, focuses and implications under the background of internet big data

For example, due to higher external financing costs, leveraged firms (with little or no financial slack) could be susceptible to the underinvestment problem.

Asset revaluations under international accounting standard 16: evidence from Korea

Financial slack, human slack, and R&D investments

Organizational slack effects on innovation: the moderating roles of CEO tenure and compensation

Like most work on slack, we use financial slack as an independent variable.

The impact of slack resources on high-tech IPOs

Financial browser ?

Full browser ?

CITE

Site: Follow: Share:

Open / Close