The Mediating Effect of Financial Adaptability in the Relationship Between financing and financial fragility
Keywords:
Financial adaptability, short-term borrowing, long-term borrowing, financing structure, and equity financingAbstract
This study aims to examine the mediating role of financial adaptation in the relationship between capital structure and financial fragility among industrial companies listed on the Amman Stock Exchange from 2010 to 2024. A quantitative research methodology a standard approach for studies of this nature was employed.The study identifies capital structure as the independent variable and financial fragility as the dependent variable, with financial adaptation serving as the mediating variable. Necessary analyses were conducted, including correlation and regression analyses, t-tests, and analysis of variance (ANOVA), utilizing SPSS and Smart PLS software for data processing. Secondary data were obtained from the companies' official websites. The study yielded significant findings, revealing that all dimensions of the dependent variable are directly influenced by the independent variable, an effect that is further reinforced by the mediating variable of financial adaptation. The study’s key contribution lies in providing precise estimates regarding the financing trajectories of these companies specifically, identifying optimal financing choices, mitigating factors that exacerbate financial fragility, and adapting to sudden changes.
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