The relationship between corporate life cycle and cost of equity in listed firms on Tehran Stock Exchange

Document Type : Research Paper

Authors

Assistant Professor in Accounting Shafagh Institute of Higher Education, Tonekabon, Iran

Abstract

The nature of the life-cycle theory shows that investment and financing decisions and the company's operating strategy largely will be affected by different variables and organizational capabilities (life cycle). The purpose of this research is to examine the relationship between corporate life cycle and cost of equity in listed firm on Tehran stock exchange. For this purpose, 105 firms from our statistical society for the period of 2009-2014 were chosen. Multivariate regression method based on panel data and independent T test was used to test the research hypotheses. The result shows that there is a positive relationship between the firm life cycle and cost of equity. Also, there is no significant difference between cost of equity in mature stage with compare decline stage and also between growth stage with compare decline stage.

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References

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History

  • Receive Date: 17 July 2016
  • Revise Date: 15 June 2019
  • Accept Date: 30 October 2016

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