Financial Flexibility and Health Sector Firm Performance in ASEAN-5 Countries: Moderating Role of Directors with MD Degree
Nida Hanasa (a*), Arief Wibisono Lubis (b)

a) Faculty of Economics and Business, Universitas Indonesia, Jakarta 10430 Indonesia
*nida.hanasa01[at]ui.ac.id
b) Department of Management, Faculty of Economics and Business, Universitas Indonesia, Jakarta 10430 Indonesia


Abstract

Under uncertain circumstances, financial flexibility is considered to play an important role in enterprise strategic adjustment and is also important for firms in developing countries with high volatility stock markets. With increasing public attention to the health sector as the pandemic progresses, the question arises whether healthcare companies should be led by directors with a medical background or not. This study examines the effect of financial flexibility on the performance of health sector firms in ASEAN-5 countries with the moderating role of directors with medical doctor (MD) degree. Data for 2015 - 2020 from health sector firms listed in Indonesia Stock Exchange, Bursa Malaysia, Singapore Exchange, Stock Exchange of Thailand, and The Philippine Stock Exchange were collected and analyzed using time-series regression technique. Analysis was conducted using Stata software. The study finds that of financial flexibility has no influence on health sector firms performance in ASEAN-5 countries and directors with MD degree has no moderating effect

Keywords: Medical doctor- Board of directors- Financial flexibility- Firm performance- Health sector- ASEAN-5

Topic: Financial Management and Accounting

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