Life Cycle Effects on Financing Policy, Investment, Liability and Liquidity

Document Type : Research Paper

Authors

1 Master of Foreign Exchange Accounting

2 Assistant Professor at Al-Zahra University

3 Associate professor at Alzahra University

Abstract

Today, organizations follow specific financing, investment and liquidity policies with regard to their lifecycle stage. This study investigates firms' financing, investment and liquidity policies at different stages of their lifecycle. The population of this research is firms listed in the Tehran Stock Exchange during the years 2009 to 2015. The sample consists of 128 firms selected through the screening method and removal of outlier observations.This study determines the life cycle using accounting variables in order to examine its impact on capital expenditures, net of equity, debt and liquidity changes.This research uses panel data structure with fixed effect and multivariate regression model of analysis at confidence level of 90%. Findings show that investment is more in growth stages than of maturity and decline stages. Also, results show that there is a significant positive relation between the growth stage and debt issues

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References

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Empirical Research in Accounting
Volume 8, Issue 4 - Serial Number 30
January 2019
Pages 155-174

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History

  • Receive Date: 20 January 2017
  • Revise Date: 28 March 2017
  • Accept Date: 27 May 2017

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