Integrating Long-Term Financial Planning and Liquidity Management to Enhance Corporate Resilience through Financial Flexibility during Global Economic Crises

Global economic crises expose firms to severe financial volatility, making corporate resilience a critical concern for managers and policymakers. This study investigates how long-term financial planning and liquidity management contribute to corporate resilience during global economic crises, with financial flexibility acting as a mediating mechanism. Using a quantitative research design, the study employs panel data from non-financial companies listed on the Indonesian Stock Exchange over the period 2015–2022. Fixed-effects panel regression and mediation analysis are applied to examine both the direct and indirect relationships among the key variables. The results show that long-term financial planning and liquidity management have significant positive effects on corporate resilience, indicating that firms with structured financial strategies and adequate liquidity buffers are better able to withstand economic shocks. Furthermore, financial flexibility is found to have a strong positive influence on corporate resilience and partially mediates the relationships between long-term financial planning, liquidity management, and resilience. These findings suggest that corporate resilience is not solely determined by isolated financial decisions but rather by an integrated financial strategy that combines forward-looking planning with effective liquidity management. The study contributes to the corporate finance literature by providing an integrated framework linking financial planning, liquidity management, and financial flexibility in explaining corporate resilience during periods of economic uncertainty. The findings also offer practical insights for managers seeking to enhance financial stability and sustainability in volatile global economic environments.

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