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.
omid Pourheidari; A Ghaffarloo
Volume 9, Issue 35 , October 2012, , Pages 49-67
Abstract
One of the ways to prevent fraud of management and increase the quality of financial information is the compliance quality characters of financial information, such as characteristic of conservatism. Adopt a conservative approach on the one hand by increasing the quality of financial information, and ...
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One of the ways to prevent fraud of management and increase the quality of financial information is the compliance quality characters of financial information, such as characteristic of conservatism. Adopt a conservative approach on the one hand by increasing the quality of financial information, and trading unit risk information, and ultimately reduces the cost of equity, But on the other hand, showing a poor image of the company, the risk of return on capital and at the result, cost of equity capital increases. In response to a question that ultimately conservatism increases costs of equity capital or reduce its, in this study the effect of the types of conservatism (conditional or unconditional) on the cost of equity capital has been studied. For this purpose, information about companies listed in Tehran Stock Exchange during the period 1382 till 1389 has been used. To assess the relationship between conditional and unconditional conservatism with cost of equity capital, respectively, the model of the Basu (1977) and criterion market to book value, by Beaver and Ryan (2005) is used. The results showed that the association between conditional conservatism and cost of equity capital is negative and significant. In other words, if the bad news, more and timely than good news, reflected in accounting profits, cost of equity capital will increase. But there is no clear and significant relation between unconditional conservatism, and equity participation.
