Tax Avoidance Dynamics across Firm's Life Cycle

Using a sample of listed firms in Malaysia, Philippines, Singapore and Thailand, this article examines the association between busy board of directors and firm performance. We offer three results. First, we find that firm performance (measured by operating profitability and market-to-book equity) is negatively associated with busy boards. Second, we find that firms with busy boards have higher operating risk (measured by volatility of return on assets, volatility of stock returns and volatility of operating cash flow). Third, we find that the association between firm performance and busy boards is conditional on the firm’s life cycle stage. For firms in the growth stage, busy boards are beneficial to firm performance suggesting that the experience knowledge and reputation accumulated with multiple directorships help busy directors to more effectively advise these firms. In contrast, for firms in the maturity stage of their life cycle, busy boards are detrimental to firm performance suggesting the monitoring role of board is weakened by multiple directorships.

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The Effect of the Firm's Life Cycle on the Leverageor Performance by Earnings Management

Korea International Accounting Review ◽

10.21073/kiar.2018..78.002 ◽

2018 ◽

Vol null (78) ◽

pp. 19-45

Author(s):

Woen Park

Keyword(s):

Life Cycle ◽

Earnings Management ◽

Firm’S Life Cycle

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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

International Journal of Recent Technology and Engineering - 2 ◽

10.35940/ijrte.d7473.118419 ◽

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.

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