Completed: 【KAKEN】Firm value and Flexibility: Empirical and Case studies

Research Category

Grant-in-Aid for Scientific Research (C)

Project Period

2017-04-01 – 2020-03-31

Principal Investigator

Professor Nobuyuki ISAGAWA


In this reasarch project, we examine the relationship between Japanese firms' operating flexibility and financial policy. We find that there is no significant relationship between financial distress possibility and operating leverage. We further find that firms with high oerating leverage (high fixed costs) tend to have low liabilities and hifh cash position. That is, firms with high oerating risk have enough financial flexibility for bisiness continity. Japanese firms have business flexibility by choosing appropriate financial policy to each operating flexibility.