scholarly journals The Impact of Regional Soft Environment on SME Performance in China:Considering the Moderating Effect of Firm Life Cycle

2016 ◽  
Author(s):  
Dongping Yu ◽  
Yunlong Duan
Keyword(s):  
Life Cycle ◽  
Moderating Effect ◽  
Firm Life Cycle ◽  
The Impact

scholarly journals The effect of firm life cycle on profitability: Evidence from Jordanian firms

2021 ◽  
pp. 1919-1926
Author(s):  
Abdullah Aldaas
Keyword(s):  
Life Cycle ◽  
Performance Measure ◽  
Mature Stage ◽  
Current Ratio ◽  
Firm Life Cycle ◽  
Life Cycle Stages ◽  
Time Period ◽  
Panel Data Regression ◽  
Data Regression ◽  
The Impact

Profitability is an important performance measure and a related study based on the life cycle of firms is appreciated by researchers and managers. The impact of the financial crisis adds novelty to such research. This study discusses the impact of financial ratios on profitability of firms under the influence of financial crises. It is based on a sample of 42 Jordanian firms and uses panel data regression on an annual dataset for the time period 2000-2018. The study found mature stage firms to be explained best with the suggested model. The impact of current ratio on the profitability of all companies was observed as positive while the profitability is found to be negatively affected by debt for all life cycle stages except for the declining stage. Also, it is found that the declining stage firms need to rely on debt to stay profitable and sustain.

The impact of life cycle stage on firm acquisitions

2020 ◽  
Vol 28 (2) ◽  
pp. 223-241
Author(s):  
Daniel Ames ◽  
Joshua Coyne ◽  
Kevin Kim
Keyword(s):  
Life Cycle ◽  
Research Study ◽  
Abnormal Returns ◽  
Life Cycle Stage ◽  
Content Type ◽  
Firm Life Cycle ◽  
Logistic Regressions ◽  
The Impact ◽  
Practical Implications ◽  
Tremendous Impact

Purpose The purpose of the authors’ research study is to identify the impact of life cycle stage on firm acquisitions. Design/methodology/approach The authors use a series of empirical databases to identify characteristics of acquirers and their targets. The authors then use logistic regressions and joint tests to identify significant differences between declining and non-declining acquirers. Findings The authors find that declining acquirers are more likely to pursue diversifying acquisitions and to pay for the acquisition with stock considerations. Acquisitions by declining acquirers result in positive abnormal returns initially, but post-acquisition returns are negative. Research limitations/implications The authors’ primary limitation is their data, which only includes public acquirers and targets, and runs from January 1, 1988 to December 31, 2010. Practical implications The authors’ research suggests that regulators, stakeholders and prospective stakeholders should consider the life cycle stage of an acquiring firm in setting expectations about motivations for and likely performance subsequent to the acquisition. Originality/value The authors’ paper is the first to consider the effect of firm life cycle stage on the motivation and subsequent success of an acquisition. Given the tremendous impact to shareholders of such significant transactions, understanding the acquisition process more completely is important to capital markets participants.

scholarly journals How Does Firm Life Cycle Affect Board Structure? Evidence from China's Listed Privately Owned Enterprises

2018 ◽  
Vol 14 (2) ◽  
pp. 305-341 ◽  
Author(s):  
Yunhe Li ◽  
Xiaotian Tina Zhang
Keyword(s):  
Life Cycle ◽  
Developed Countries ◽  
Board Structure ◽  
Board Size ◽  
Ceo Duality ◽  
Board Chair ◽  
Firm Life Cycle ◽  
Using Data ◽  
The Impact ◽  
Privately Owned

ABSTRACTUsing data from China's listed privately owned enterprises (POEs) during the period from 2002 to 2014, we explore the effects of firm life cycle on board structure. We find that the board size of China's listed POEs declines over firm life cycle, and there is a trend of separation for board chair-CEO duality while board independence remains almost static. We further provide evidence that board size and independence are determined by the benefits of monitoring and advisory roles of the boards through all the stages of firms’ life cycle with different drivers. The impact of CEO power on board chair-CEO duality is determined by the benefits and costs of separation of board chair, and CEOs are supported at all stages of firms’ life cycle. This article sheds light on the dynamic board structure in an emerging economy where the external corporate governance is weaker than that of developed countries. Our findings suggest that the board structures of China's listed POEs are adjusted at various stages of firms’ life cycle, and the adjustments are mostly based on the resources brought by the new board of directors.

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