scholarly journals Financial Architecture in the Different Life Cycle Stages

2018 ◽  
Vol 11 (4) ◽  
pp. 11-35
Author(s):  
Anastasia Stepanova ◽  
Izabella Kazaryan
Keyword(s):  
Regression Analysis ◽  
Life Cycle ◽  
Capital Structure ◽  
Ownership Structure ◽  
Transition Period ◽  
Maturity Stage ◽  
Financial Architecture ◽  
Life Cycle Stages ◽  
Primary Sample ◽  
A Company

In this article, we consider the relation between capital structure, corporate governance, ownership structure and performance of a company depending on its life cycle stages.  The central aim of this study is to define the most sustainable and effective types of financial architecture by using the cluster and regression analysis. This study describes the three stages of the life cycle of a company: the first stage is growth, followed by maturity and finally the stage of decline, but for our research we only examine companies in the maturity stage. The research includes 11 countries from emerging markets and the primary sample includes 4,675 non-financial companies from 2011 to 2015. As the measure of a company’s performance, we used Tobin’s Q coefficient and total shareholder return. The primary sample was divided into the 3 life cycle stages by using the approach of comparing the growth rates of revenues at the average rate of revenue growth in the industry (Cao, 2010); however, we did not consider the earlier stages of the life cycle due to the specificity of the sample. A cluster analysis was performed on the sample for the growth and maturity stages in order to show the difference between the clusters that depends on the life cycle stages. We analyzed the clusters’ sustainability by regression analysis in each cluster. We described the influence of the financial architecture component on market performance. The results indicate more than one sustainable cluster and demonstrate the influence of the ownership structure, capital structure and the board characteristics on the company’s efficiency depending on the stage of the life cycle, which proves there is a need to take into account the issues of the life cycle. The managers and directors of a company can use results of this study when developing a company’s strategy, especially during the transition period from one life cycle to another.

scholarly journals Capital structure, corporate performance, and life cycle: Evidence from Indonesia

2017 ◽  
Vol 14 (4) ◽  
pp. 449-461
Author(s):  
Eko Suyono ◽  
Subba Reddy Yarram ◽  
Riswan Riswan
Keyword(s):  
Regression Analysis ◽  
Life Cycle ◽  
Interest Rate ◽  
Capital Structure ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Company Performance ◽  
The Relationship ◽  
Moderating Role

This study aims to investigate firstly, the influences of company life cycle (i.e., pioneer, growth, mature, and decline) and set of control variables (i.e, tax level, interest rate, institutional ownership, and managerial ownership) on capital structure; secondly, the influence of capital structure on company performance; and thirdly, the moderating role of each stage of the company life cycle on the relationship between capital structure and company performance. Implementing quantitative approach by using OLS Regression Analysis and Moderated Regression Analysis (MRA) on a set of the sample that consists of 157 Indonesian non-financial listed firms for 2010-2015 periods (942 firm years), findings show that company life cycle has a significant influence on capital structure. While for control variables, tax level and institutional ownership have a positive influence on the capital structure, wherein interest rate and managerial ownership have a negative effect on capital structure. Moreover, capital structure ratio influences positively on company performance. Finding also documents that pioneer and growth stages have a moderating role in strengthening the influence of capital structure on company performance, while mature and decline stages have a moderating role in weakening the influence of capital structure on company performance. This study provides important implications for corporations and business practitioners with regard to the best choice in the composition of capital structure which is able to improve company performance. On the best of our knowledge, it is the first study testing the moderating role of company life cycle on the relationship between capital structure and company performance.

scholarly journals Capital Structure Theories and Speed of Capital Adjustment towards Target Capital Structure along Life Cycle Stages of Asian Manufacturing Firms

2020 ◽  
Vol 6 (1) ◽  
pp. 53-62
Author(s):  
Muhammad Sajid Amin ◽  
Hashim Khan ◽  
Imran Abbas Jaddon ◽  
Muhammad Tahir
Keyword(s):  
Life Cycle ◽  
Capital Structure ◽  
Manufacturing Firms ◽  
The Other ◽  
Mature Stage ◽  
Costs And Benefits ◽  
Speed Of Adjustment ◽  
Capital Adjustment ◽  
Life Cycle Stages

Purpose: Firms have different costs and benefits and asymmetric information across their life cycle stages and hence each stage has different financial pattern and speed of adjustment towards target capital. Methodology: We use System GMM to test the hypotheses. We use market leverages proxies for the capital structure, life cycle proxies: introduction, growth, mature, shakeout and decline and the control determinants of capital structure such as profitability, tangibility, firm size and growth opportunities. We estimate the financial pattern and speed of adjustment along life cycle stages of manufacturing firms from eleven Asian economies over the period of 2010-2018. Findings: The results show that firms in earlier stages have more long term debt than mature stage. The speed of adjustment towards target capital structure is highest in mature stage than the other stages. The control determinants significantly affect market leverages. Implications: The findings suggest that management has to consider life cycle stages of their firms in order to adjust capital structure. Stockholders should consider stage of firm with relation to profitability and capital structure for long term prospects.

scholarly journals Capital Structure Decision during Firm’s Life Cycle: with Reference of Top Companies Listed in Bse 500 Operating in India in Terms of the Market Capitalization

2019 ◽  
Vol 8 (4) ◽  
pp. 6685-6692
Keyword(s):  
Life Cycle ◽  
Capital Structure ◽  
Early Stage ◽  
Order Theory ◽  
Maturity Stage ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Market Capitalization ◽  
Flow Generation ◽  
Firm’S Life Cycle

Researchers have always made laudable contribution in examining the factors that influence an individuals and business firms to adopt and maintain the capital structure decision during a firm’s life cycle. The research methodology is carried out to examine the financing choices of top 100 firms in terms of the market capitalization through a close outlook with the business life cycle. The determinant of capital structure decision is based on profitability, liquidity, nature of industry, timing and timing of issue. Debt is taken as a fundamental source in an early stage where as in maturity stage, firm re-balance their capital structure gradually substituting debt for internal capital. This study aims to generate an idea of a dynamic evolution of the firm across the different stages, investment/disinvestment needs, profitability, cash flow generation and risk changes. Moreover, the study is carried out with a comprehensive analysis of the firm’s capital structure and the main elements in the classical theories, i.e. Trade off Theory and Pecking Order Theory.

scholarly journals PERBANDINGAN SIKLUS HIDUP PRODUK DOTA 2 DAN CS:GO BERDASARKAN STRATEGI EVENT MARKETING

2019 ◽  
Vol 10 (1) ◽  
pp. 1-24
Author(s):  
Reynaldi Dwi Junianta ◽  
Sanaji Sanaji
Keyword(s):  
Life Cycle ◽  
Product Life Cycle ◽  
Growth Stage ◽  
Secondary Data ◽  
Maturity Stage ◽  
Product Life ◽  
Event Marketing ◽  
Life Cycle Stages ◽  
The Difference ◽  
Cook Model

The purpose of this research is to get the Product Life Cycle’s phase from Dota 2 and CS:GO based on Polli and Cook model and to know the difference of impact of Marketing Event Dota 2 and CS:GO strategy on Product Life Cycle Dota 2 and CS:GO. The method of this research is qualitative. The data used are secondary data collected through documents on the internet. The data processed by the Polli and Cook formulas to produce the Product Life Cycle stages and data on Event Marketing both games are collected and compared each criteria. The results show that product life cycle both online games can be proved by Polli and Cook model. At each stage the two games have different strategies. Dota 2 Product Life Cycle stages are: 1) the introduction phase starts and ends in July 2012; 2) the growth stage starts in July 2012 and ends in November 2012; 3) the maturity phase starts in December 2012 until now. CS:GO Product Life Cycle stages are: 1) introduction phase starts and ends in August 2012; 2) the growth stage starts in August 2012 and ends in January 2014; 3) the maturity stage starts in February 2014 until now.

scholarly journals Financial and economic characteristics of the organization's life cycle

2020 ◽  
Vol 82 (3) ◽  
pp. 246-252
Author(s):  
Y. A. Salikov ◽  
N. N. Krivtsova
Keyword(s):  
Life Cycle ◽  
Life Cycle Stage ◽  
Point Of View ◽  
Economic Indicators ◽  
Maturity Stage ◽  
Business Organization ◽  
Economic Activities ◽  
Stage Of Development ◽  
Life Cycle Stages ◽  
Key Aspects

One of the most acceptable scientific and methodological approaches to work in difficult economic conditions is regular and targeted management of the life cycle of a business organization as an open social and economic system. Any system develops and changes, passing through typical stages or cyclic states of its development. Studying the enterprise from the point of view of the life cycle allows to increase efficiency of financial and economic activity exactly at the specified stage and in due time to develop measures on prevention or weakening of negative and increase of positive results. The analysis of scientific researches has allowed to define the "life cycle of an enterprise" as a quantitatively limited set of stages or states within which the enterprise is during its existence and development. With regard to the functioning of a business organization, the following stages of its life cycle have traditionally been identified: creation, growth, maturity and crisis. Depending on the stage of the life cycle, a business organization should focus on various aspects of its financial and economic activities. Development of a business organization is to ensure the transition from the first and second stages to the third, and the longest possible retention (maturity stage) with timely identification of signs of the fourth stage (crisis) in order to prevent it by retaining the existing positions, returning to the second stage, diversification or transition to a new life cycle. Each stage of development has its key aspects on which management should focus to achieve and maintain positive financial and economic performance. Correspondence of life cycle stages and financial and economic priorities gives grounds for development of the system of financial and economic indicators and formation of limits of their permissible fluctuations within each stage. Based on the values of financial and economic indicators and their dynamics, it is possible, firstly, to contribute to more accurate diagnostics of the life cycle stage of a business organization; secondly, to improve the efficiency of a business organization at each stage by adjusting the values of indicators within the optimal ranges and applying adequate managerial impacts.

Firm’s Life Cycle Spurs the Dividend Payments: A Fallacy or an Actuality?

Paradigm ◽  
2019 ◽  
Vol 23 (1) ◽  
pp. 36-52
Author(s):  
Jasminder Kaur
Keyword(s):  
Life Cycle ◽  
Predictive Power ◽  
Maturity Stage ◽  
Sample Period ◽  
Dividend Payment ◽  
Independent Variables ◽  
Decline Phase ◽  
Dividend Payments ◽  
Life Cycle Stages ◽  
Firm’S Life Cycle

The study aims at testing the predictive power of life cycle proxies during the five life cycle stages in performing the accurate prognosis of dividend decisions of Indian companies. S&P BSE 500 companies have been selected for the study, and the sample period of 11 years commencing from 1 January 2005 to 31 December 2015 is taken. Life cycle of the firm is classified into five stages—introduction, growth, maturity, shake-out and decline phase. Cash flow patterns form the premise of such classification. All the four independent variables—size of company, proportion of cumulative retained profits as of total equity, total equity to total asset ratio and return on total assets (ROA)—turn out to be significant contributors in professing the occurrence of dividend payment event at the maturity stage of the firms’ life cycle.

scholarly journals Organisational life cycle, business orientation and performances of architectural firms in Nigeria

2016 ◽  
Vol 16 (1) ◽  
pp. 50-63
Author(s):  
Adedapo Adewunmi Oluwatayo ◽  
Dolapo Amole ◽  
Obioha Uwakonye
Keyword(s):  
Cluster Analysis ◽  
Regression Analysis ◽  
Life Cycle ◽  
Life Cycle Stage ◽  
Life Cycles ◽  
Business Strategies ◽  
Life Cycle Stages ◽  
Using Data ◽  
Business Orientation ◽  
Architectural Firms

This study sets out to investigate the relationships between the organisational life cycles, business orientation and performances of architectural firms, which often start with just the principal and little capital. In the study, the organisational life cycles stages of the firms were identified, and the way that business orientation emphasis changes with the firms’ life cycles were investigated. In addition, the business orientation dimensions that predict the architectural firms’ performance at each life cycle stage were identified. The study was carried out using data collected through self-administered questionnaires from architectural firms in Nigeria. The organisational life cycle stages of the firms were identified using cluster analysis, and the predictors of performances were identified using regression analysis. The results of the study show that only focus on prominence varied significantly with the organisational life cycles of the firms. Another important finding of the study is that market orientation led to better performance at some organisational life-cycle stages, while profit orientation led to better performance at some other stages. It was recommended that firms should choose business strategies that take into consideration their organisational life cycle stages to enhance their performances.

Capital structure dynamics among SMEs: Swedish empirical evidence

2016 ◽  
Vol 17 (2) ◽  
pp. 245-260 ◽  
Author(s):  
Darush Yazdanfar ◽  
Peter Öhman
Keyword(s):  
Life Cycle ◽  
Capital Structure ◽  
Equity Capital ◽  
Firm Level ◽  
Content Type ◽  
Life Cycle Stages ◽  
Start Up ◽  
Level Data ◽  
Industry Sectors ◽  
Firm Owners

Purpose This paper aims to empirically investigate the existence of dynamic capital structure among small and medium-sized enterprises (SMEs) across their life cycle stages. Design/methodology/approach The analysis examined a sample of 15,952 SMEs across five industry sectors for the 2009-2012 period. Several techniques, including ANOVA and multivariate regressions, were used to analyse firm-level data. Findings The findings suggest that start-up SMEs, on average, rely on equity capital, and that the level of equity capital increases as firms age. The short-term debt level is particularly high in early life cycle stages, decreasing later on. The long-term debt ratio is positively related to firm age, although it is low in all life cycle stages investigated. Practical implications The findings may help several parties, including firm owners, to better understand how capital structure can be related to various life cycle stages. Such an understanding may help these actors use financial resources efficiently. Originality/value To the authors’ best knowledge, little research has addressed whether there are any differences in financing patterns over the firm life cycle.

scholarly journals Pengaruh Struktur Modal Terhadap Kinerja Perusahaan Berdasarkan Siklus Hidup Perusahaan

2018 ◽  
Vol 5 (1) ◽  
pp. 69
Author(s):  
Tia Ardianty Aulia ◽  
Nining Ika Wahyuni ◽  
Indah Purnamawati
Keyword(s):  
Life Cycle ◽  
Capital Structure ◽  
Stock Exchange ◽  
Hypothesis Test ◽  
Secondary Data ◽  
Company Performance ◽  
Manufacturing Companies ◽  
Regression Methods ◽  
Life Cycle Stages ◽  
The Capital Structure

This research aims to examine the effect of capital structure to the company's performance based on the life cycle. The population in this study are all manufacturing companies listed on the Indonesia Stock Exchange (BEI) in 2011-2015. Sampling by using purposive sampling method, that is by grouping companies into life cycle stages based on the average sales growth. The sample in this study as many as 98 companies. This research uses secondary data that the financial statements of companies manufacturing the years 2011-2015 were obtained in the Indonesia Stock Exchange. The data used include sales, debt, equity, assets and profit after tax.Methods of data analysis using Descriptive Statistics, Clasiccal Assumption Test, Regression Methods, and Hypothesis Test consisted of t Test, F Test and Coefficient of Determinatio (R Square). The results showed that the capital structure at start up, growth, and mature have a significant positive effect on company performance. The capital structure at each stage of the company life cycle is different, the greater the capital structure then the company's performance is increasing. Keywords: Capital Structure, Company Performance, Company Life Cycle, manufactur

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