Investigating the Economic Consequences of Organizational Slack Capacities in Listed Companies

Soleimani Amiri, Gholamreza; Beizaeinezhad, Mahnaz

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Soleimani Amiri G, Beizaeinezhad M. Investigating the Economic Consequences of Organizational Slack Capacities in Listed Companies. ORMR 2025; 15 (1) :145-172
URL: http://ormr.modares.ac.ir/article-28-76754-en.html

Investigating the Economic Consequences of Organizational Slack Capacities in Listed Companies

Gholamreza Soleimani Amiri

¹, Mahnaz Beizaeinezhad²

1- Associate Prof of Accounting, Faculty of Social Sciences and Economics, Alzahra Univer-sity, Tehran, Iran. , gh.soleymani@alzahra.ac.ir
2- Ph.D. Student of Accounting, Faculty of Social Sciences and Economics, Alzahra Univer-sity, Tehran, Iran.

Abstract: (43 Views)

One of the new and debatable issues in the field of organizational resource management (financial and human resource) is the existence of slack (surplus) resources and capacities in the financial and human areas of organizations. Furthermore, there are many positive and negative viewpoints regarding the necessity of these slack resources in organizations. Some researchers have found the existence of these resources and capacities useful and necessary, and another group has considered the provision of these resources not only useful, but also harmful; Therefore, in this research, the economic consequences of 199 companies listed in the stock exchange during the 8-year period from 2015 to 2023 have been investigated. Four criteria have been used to determine the slack resources of the organization, as described 1.absorbed financial slack resources, 2.unabsorbed financial slack resources, 3.potential financial slack resources and 4.human slack resources. Also, variables of 1.company's performance, 2.company's market value and 3.company's financial distress were used to measure the economic consequences of organizational slack resources. Control variables as other effective factors on the economic consequences of organizational slack resources including 1.financial leverage, 2.company's size and 3.ratio of operating cash flow were applied, too. Finally, the results showed that unabsorbed financial slack resources, potential financial slack resources and human slack resources had economic consequences, and only absorbed financial slack resources lacked the economic consequences in terms of any of the performance, market value and financial distress variables.

Keywords: Organizational Surplus Capacities, Absorbed Financial Slack Resources, Unabsorbed Financial Slack Resources, Potential Financial Slack Resources, Human Slack Resources.

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Article Type: Original Research | Subject: Organizational Behavior and Human Resource Management
Received: 2024/08/27 | Accepted: 2024/12/30 | Published: 2025/03/30

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