Gholamreza karami; Omid Akhoundi
Abstract
The main objective of this paper is to evaluate the effect of the corporate life cycle stages on the cost of equity of firms listed on the Tehran Stock Exchange. In this study we used Dickinson's Model (2011) to determine the corporate life cycle stages and Gordon Model to calculate cost of equity. In ...
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The main objective of this paper is to evaluate the effect of the corporate life cycle stages on the cost of equity of firms listed on the Tehran Stock Exchange. In this study we used Dickinson's Model (2011) to determine the corporate life cycle stages and Gordon Model to calculate cost of equity. In this study, we first took samples using the cash flow statement data (including cash flow from operating activities, cash flow from investing activities and cash flow from finance activities) and separated the firms in the growth stage, maturity stage and decline stage, then, using multivariate regression analysis and mean comparison tests, hypotheses were studied and tested. The results of 110 firms (990 company - year) from 2006 to 2014 shows that the firms, cost of equity in different stages of the life cycle (growth, maturity, decline) are significantly different. The results also show that in the decline stage the cost of equity is at the highest level and in the maturity stage it is at the lowest level.
Vali Khodadadi; Javad Nikkar; Sajjad Veisi
Abstract
The main objective of this paper is to evaluate the effect of the corporate life cycle stages on the cost of equity of firms listed on the Tehran Stock Exchange. In this study we used Dickinson's Model (2011) to determine the corporate life cycle stages and Gordon Model to calculate cost of equity. In ...
Read More
The main objective of this paper is to evaluate the effect of the corporate life cycle stages on the cost of equity of firms listed on the Tehran Stock Exchange. In this study we used Dickinson's Model (2011) to determine the corporate life cycle stages and Gordon Model to calculate cost of equity. In this study, we first took samples using the cash flow statement data (including cash flow from operating activities, cash flow from investing activities and cash flow from finance activities) and separated the firms in the growth stage, maturity stage and decline stage, then, using multivariate regression analysis and mean comparison tests, hypotheses were studied and tested. The results of 110 firms (990 company - year) from 2006 to 2014 shows that the firms, cost of equity in different stages of the life cycle (growth, maturity, decline) are significantly different. The results also show that in the decline stage the cost of equity is at the highest level and in the maturity stage it is at the lowest level.
Abstract
The main objective of this paper is to evaluate the effect of the corporate life cycle stages on the cost of equity of firms listed on the Tehran Stock Exchange. In this study we used Dickinson's Model (2011) to determine the corporate life cycle stages and Gordon Model to calculate cost of equity. In ...
Read More
The main objective of this paper is to evaluate the effect of the corporate life cycle stages on the cost of equity of firms listed on the Tehran Stock Exchange. In this study we used Dickinson's Model (2011) to determine the corporate life cycle stages and Gordon Model to calculate cost of equity. In this study, we first took samples using the cash flow statement data (including cash flow from operating activities, cash flow from investing activities and cash flow from finance activities) and separated the firms in the growth stage, maturity stage and decline stage, then, using multivariate regression analysis and mean comparison tests, hypotheses have been studied and tested. The results of 110 firms (990 company - year) during the period from 2006 to 2014 shows that the firms cost of equity in different stages of the life cycle (growth, maturity, decline) are significantly different. The results also show that in the decline stage the cost of equity is at the highest level and in the maturity stage it is at the lowest level.
Mona Abednazari; Iraj Noravesh; Ebrahim Ebrahimi
Volume 10, Issue 39 , October 2013, , Pages 147-166
Abstract
Intrinsic value of a company depends on its financial and investment decisions. Companies with different investment opportunities are priced different in the market. The set of investment opportunities of companies are influenced by their current status in their life cycle.In this study, based on data ...
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Intrinsic value of a company depends on its financial and investment decisions. Companies with different investment opportunities are priced different in the market. The set of investment opportunities of companies are influenced by their current status in their life cycle.In this study, based on data from a sample of Tehran Stock Exchange listed companies during the period of 1385 to 1389, relationship between investment opportunities and earnings in according to corporate life cycle were examined.Results showed that there is a significant relationship between investment opportunities and earnings response coefficients. The results showed that the explanatory power of relationship between earnings and investment opportunities in companies differs with their life cycle stages. The companies that are in the growth phase of the life cycle, the relationship between earnings and investment opportunities is stronger than the companies that are in the recession phase of the life cycle.