How Financial Slack Affects Corporate Performance

An Examination in an Uncertain and Resource Scarce Environment

  • Bernadette Gral

Part of the BestMasters book series (BEST)

Table of contents

  1. Front Matter
    Pages I-XIV
  2. Bernadette Gral
    Pages 1-4
  3. Bernadette Gral
    Pages 5-16
  4. Bernadette Gral
    Pages 17-68
  5. Bernadette Gral
    Pages 69-73
  6. Bernadette Gral
    Pages 75-98
  7. Bernadette Gral
    Pages 99-104
  8. Bernadette Gral
    Pages 105-108
  9. Back Matter
    Pages 109-116

About this book


Bernadette Gral examines the relationship between financial slack and corporate performance in the European pharmaceutical industry during the financial crisis of 2007 to 2010. Her investigation includes correlational and regression analyses as well as the qualitative content analysis of newspaper articles. The results show that financial slack influences corporate performance measured as ROA based on net income, thus implying that firms use slack resources to enhance performance during crises. The findings support the arguments for a beneficial effect of financial slack on performance according to the resource based view and behavioral theory of the firm.


  • Conceptualization and Measurement of Financial Slack
  • Relationship between Financial Slack and Corporate Performance
  • Impact of Environmental Uncertainty and Munificence on Financial Slack

 Target Groups

  • Researchers, students, and managers in the fields of financial management and accounting

 The Author

Bernadette Gral studied Controlling, Business Accountancy, and Financial Management at the University of Applied Sciences Upper Austria/Steyr. She works as a consultant in the fields of finance and accounting.


Conceptualization of financial slack Environmental munificence and financial slack Environmental uncertainty and financial slack Financial slack and corporate performance

Authors and affiliations

  • Bernadette Gral
    • 1
  1. 1.Fakultät für ManagementFH OberösterreichSteyrAustria

Bibliographic information

  • DOI
  • Copyright Information Springer Fachmedien Wiesbaden 2014
  • Publisher Name Springer Gabler, Wiesbaden
  • eBook Packages Business and Economics
  • Print ISBN 978-3-658-04551-7
  • Online ISBN 978-3-658-04552-4
  • Buy this book on publisher's site
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