Hassan Zalaghi; Nasim Rezaei
Volume 4, Issue 6 , June 2017, , Pages 596-610
Abstract
The difference of cost of equity in different life cycles of firms from growth to decline can help the firms to provide finance and understand the effect of life cycle in costs of financial provision with the important consequences in strategic planning of firms. This research investigates the stages ...
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The difference of cost of equity in different life cycles of firms from growth to decline can help the firms to provide finance and understand the effect of life cycle in costs of financial provision with the important consequences in strategic planning of firms. This research investigates the stages of life cycle of firms and costs of equity with data from 113 firms of The Firms Listed in Tehran Stock Exchange from 2003 to 2014. Testing the hypotheses, multiple regressions was used based on the combined data. The results showed that the cost of equity in the stages of decline increases and in growth and mature stage decreases than that in shake out stage. The findings of this research are consistent with life cycle theory of firms.
Amir Motahedin; Ehsan Mirmostafaee
Volume 1, Issue 1 , August 2014, , Pages 28-36
Abstract
This study was conducted to investigate the relationship between capital structure policies and the lifecycle of listed companies in Tehran Stock Exchange. In order to achieve this aim, a main hypothesis and three sub-hypotheses were developed and a multivariate linear regression was used to test research ...
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This study was conducted to investigate the relationship between capital structure policies and the lifecycle of listed companies in Tehran Stock Exchange. In order to achieve this aim, a main hypothesis and three sub-hypotheses were developed and a multivariate linear regression was used to test research hypotheses. This research was performed on 187 listed companies in Tehran Stock Exchange based on the information contained in financial reports from 2005 to 2011. In this research companies are divided into two groups: companies in the growth stage and companies in the maturity stage; and capital structure is composed of net debt issue, retained earnings and equity. The research results showed that the effect of the deficit on net debt issue was higher in companies in the growth stage compared to companies in the maturity stage, but was no significant and also the effect of the deficit on net equity and retained earnings in companies in the growth stage was higher compared to companies in the maturity stage and was significant. The research main hypothesis also showed that companies in the growth stage follow the hierarchical theory more than companies in the maturity stage, but it is not significant.
