The Relationship between Financial Flexibility, Firm Value and Financial Performance: Panel Quantile Regression Approach on the Construction Sector

The study aimed at determining the relationship between financial flexibility, firm value, and financial performance of firms operating in the construction sector for the period 2013:12-2020:06 by employing the panel quantile regression method. Two different panel quantile regression models representing firm value and financial performance for 0.25, 0.50 and 0.75 quantile segments were created in the study. Model evaluations were performed for the Q2=0.5 segment, where the absolute deviation of errors is the smallest. The results suggest that firm value and financial performance both display a significant and positive relationship with financial flexibility. It was concluded that financial flexibility is valid for companies in the construction industry.